Resolution:
Yes. By default MB service picks up the JRE information from the registry key (\\HKEY_LOCAL_MACHINE\SOFTWARE\JavaSoft\Java Runtime Environment).
Use java.library flag in the mbservice.prop to specify the location of JRE installation to be used. For example :

java.library=C:/Tibco/JRE/bin/hotspot/jvm.dll

Note that this should be the first statement in the mbservice.prop file. This flag takes precedence over the registry entry for JRE.