Increase in the number of connections gives 504 gateway timeout error in Nginx

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I have a mail server running nginx. Whenever the number of connections increase, nginx fails and give Upstream connection error in the error.log. On the browser, it gives 504 Timeout error. How can I resolve this?

I have checked the resources that are being used by my server. They are in the optimal state. Still, I am facing this issue.

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