Looks like the problem was with the binding option specified at the start up of the server.
I tried with
server 1 : run.bat -g cluster -c server0 -Djboss.messaging.ServerPeerID=1 -b 127.0.0.1
server 2 : run.bat -g cluster -c server1 -Djboss.messaging.ServerPeerID=2 -Djboss.service.binding.set=ports-01 -b <IP of the system>
This seems to have fixed the issue.