Hi Maciej,
Thanks very much for the reply and the link. I found some useful information on the link and now I have a better understanding of were to log for what logs.
I have fixed this issue by placing a commons-logging.properties file and log4j.properties file in my project classpath. There already was one logging.properties in my Apache conf folder but that was not able to disable hibernate logging.
After placing the above two files with appropriate properties I was able to achieve what I wanted.
Cheers