For CMT (Container Managed Transaction), the timeout can be set in the config/default.properties file as :
transaction.timeout = 5 // 5 seconds
If it is set as :
transaction.timeout = 0 // the transaction will not timeout
For BMT (Bean Managed Transaction), the bean developer needs to use the setTransactionTimeout() method of the UserTransaction Interface. Setting in the default.properties has no effect on BMT.
Do Entity Beans have the timeout concept though as per
EJB 1.1 they can only be CMT and not BMT?