I'm glad you found this helpful Balaji:)

\lib\ruby\gems\1.8\gems\activerecord-1.15.3\lib\active_record\validations.rb(from line 260):

      def evaluate_condition(condition, record)
        case condition
          when Symbol: record.send(condition)
          when String: eval(condition, binding)
          else
            if condition_block?(condition)
              condition.call(record) #!!!!!!!!!!!!!!!!!!!!
            else
              raise(
                ActiveRecordError,
                "Validations need to be either a symbol, string (to be eval'ed), proc/method, or " +
                "class implementing a static validation method"
              )
            end
          end
      end


[...]

      def validates_each(*attrs)
        options = attrs.last.is_a?(Hash) ? attrs.pop.symbolize_keys : {}
        attrs   = attrs.flatten

        # Declare the validation.
        send(validation_method(options[:on] || :save)) do |record|
          # Don't validate when there is an :if condition and that condition is false
          unless options[:if] && !evaluate_condition(options[:if], record)  #!!!!!!!!!!!!!!!!!!!!
            attrs.each do |attr|
              value = record.send(attr)
              next if value.nil? && options[:allow_nil]
              yield record, attr, value
            end
          end
        end
      end