Issue has been resolved indirectly by tip from OSS that old java is not supported by SAP anymore.
So I downloaded SAP JVM4 + SAP JVM SWITCH TOOL and performed switch from java for business 1.4.2 sp24 to JVM4.
During installation, there was step when installer tries to shutdown SDM and it somehow requires even previous version of java (1.4.2 sp13) which was removed some time ago (but apparently this caused primary issue). So I restored old java home and then it was replaced by JVM in configuration scripts.
Suddenly system started with fully functional java node.
I also uninstalled java 1.4.2sp13 and 1.4.2sp24 eventually and it works without any troubles 
.
Thanks for tips.
Regards,
Martin