nginx http delete request method 403 access denied

Question

I am using debian. rails, passenger and nginx. I am unable to get delete http request method to work. I get the following error when I make a delete request

Access Denied

Description: You are not allowed to access the document you requested.

except delete everything works fine including put and options.

I left nginx to default config; I never added any access rules:

   server {
               listen 80;
               server_name xxxxxxx;
               passenger_enabled on;
               rails_env    production;
               root /home/deploy/xxxxx;
               error_page   500 502 503 504  /50x.html;
               location = /50x.html {
                 root   html;
                 }
            }