Is there any chance you've exceeded the number of licenced SQLServer connections?
No i have not exceeded the number of licenced SQLServer connections.
Also, do you have logging configured in your application somehow? It would be useful to see the debug output from both Spring Framework and Hibernate.
Yes i have logging configuration using log4j in my project but it will work after initialization of spring . log file will not create untill spring initialization. And it is hanging during that as You saw.