I have my mail server at Digital Ocean and website at Bluehost. Mail server perfectly reflecting under admin panel as below
But the domain name shows the following error.
However in general, my web site (lenvica.com) and mails are being sent properly except few occasions, it throws error “554.5.7.1 you are not allowed to connect” from some IDs.
Please advise, if you have any suggestions.
You have choose to name your server as mail.domain.name instead of box.domain.name ;(
So you need to change the nameservers at your “Domain Name control panel” accordingly:
It would be somewhere called - Nameservers or GLUE (for OVH).
ns1.digitalocean.com -> ns1.mail.lenvica.com
ns2.digitalocean.com -> ns2.mail.lenvica.com
And wait for it to propagate max 48h 
I am assuming you have register domain name with Digital Ocean as well, right?
Sorry I missed to mention that the domain registrar for ‘Lenvica.com’ is Namecheap. But the DNS records are being maintained in DigitalOcean
Maybe that is where the problem is.
As far as I am aware:
I have no experience using either Namecheap nor Digital Ocean 
No, not always true. Just as you can register a domain name with any registrar, and host a website at any webhost, you can run your DNS with any DNS provider. In this case the OP chose to use DO’s DNS service.
Uhmm … it is NOT required that MiaB runs the DNS though many do use it for their domain’s DNS.
Correct, but almost all VPS providers give you that functionality in their control panel.
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