Further update on this:
Actually messaging on Node2 Queue1 was getting processed for some time probably because we are using ClusterPullConnectionFactory but after some time it’s stopped.
After investigating this problem I found that we are using ClusteredConnectionFactory with MDB, and this factory is not suitable to use with MDB.
Looking at following posts and issues
https://community.jboss.org/wiki/JBMCluster “JBoss Messaging Clustering 1.4.x Overview”
https://issues.jboss.org/browse/JBMESSAGING-842 “The current clustered ConnectionFactory is not apropriate for use with an MDB container. An MDB creates several connections during its deployment. If using a load-balancing clustered ConnectionFactory, they'll end up on different cluster nodes, which is precisely what the MDB container doesn't need.”
https://issues.jboss.org/browse/JBMESSAGING-843 “Clustered ConnectionFactory with no load balancing, but failover capabilities needed.”
I figured out that setting SupportsLoadBalancing to false for ClusteredConnectionFactory will make things work.
Please let me know if my observations are incorrect.