hey,
is it possible to set same date and time in system1 and system2 with no internet on both of them.
time needs to be same in both systems even if not accurate then its ok.
is it possible??

Install ntpd on server1 and use ntpdate server1 on server2

i have installed ntpd on server 1, can you plz explain the steps that i have to perform in server2.

run ntpdate server1 (using server1's name or ip address) on server2 in the cron of user root on a regular basis. I suggest hourly if your servers drift much.

with no internet on either system, the answer is NO.

As long as the servers are networked then it's a definite YES. There's absolutely NO need for internet access to do this.

My current production environment has around 40 servers that do not have internet access that are all taking their time from a central "local" time server.

The solution I suggested will keep the two servers at the same time, which is what the OP asked for. The OP did not ask that the times are accurate or synced to an authoritative time source:

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i tried ntpdate server1's ip on server2
its giving me an error "no suitable server for synchronization found"
hence i tried to ntpdate server3's ip instead of server1 to check if that works.. And it worked..
so why isn't server2 synchronizing with server1?
i even disabled the firewalls thinking that might be the problem.. but still not working
is there any other configuration that i might be missing?

---------- Post added 11-20-14 at 01:12 AM ----------

i tried ntpdate server1's ip on server2
its giving me an error "no suitable server for synchronization found"
hence i tried to ntpdate server3's ip instead of server1 to check if that works.. And it worked..
so why isn't server2 synchronizing with server1?
i even disabled the firewalls thinking that might be the problem.. but still not working
is there any other configuration that i might be missing?

There could be several reasons such as:
ntp is not running.
ntp is not configured to listen for external clients.
ntp does not have a local time source i.e. fudge and or stratum is not set to a low number.

It would help if you post the ntp.conf.