Comment from super task:
"Also, If you omit null or not null in the create table statement, Adaptive Server uses the null mode defined for the database (by default, NOT NULL).

Hence while creating the JMS_USERS table, and inserting users, i get this error.
The column CLIENTID in table JMS_USERS does not allow null values.

CREATE TABLE JMS_USERS (USERID VARCHAR(32) NOT NULL, PASSWD VARCHAR(32) NOT NULL, CLIENTID VARCHAR(128), PRIMARY KEY(USERID))
INSERT INTO JMS_USERS (USERID, PASSWD) VALUES ('guest', 'guest')

Either we need to update the sql in which case we need to provide a separate sybase-jdbc-state-service.xml?

Or I can set this on the sybase database.
sp_dboption db_name, "allow nulls by default", true

I am following the 2nd option.
"

So we need to explicity say which columns allow NULL.