NLB VLAN/Router Problem

Hello,
I have set up NLB over two machines. followings are ip address
Virtual IP = x.x.117.1
First Host IP = x.x.117.2
Second Host IP = x.x.117.3
The set up is working fine from all subnets i.e 117 as well as any other
subnet if both host are up and running .
But if my primary host (Host on which NLB have been set up : x.x.117.2) is
shut down then the traffic is not redirected to other host if the subnet is
other then 117. But if the subnet is 117 then the traffic is redirected to
other host(x.x.117.3)

what can be the issue?
Your help will be appreciated