Hi SanSingh.

I downloaded your 3DM file and for what I briefly checked I think that the main problem are the Red and Blue curves.
1) The red curve is a single curve made by two segments not well joined.
2) And, furthermore, even the blue curve is one single closed curve.

As you can see in the video I have simply deleted the red curve and I trimmed the blue curve.
Then I selected ALL and performed the Network command.

Hope this can help :)

Here's a video capture of Moi's screen : http://take.ms/B69p6

Here's the modified Moi file : http://take.ms/qWMGB

Here are some screenshots :