> 1) What is the purpose of doing override character set (1252 for our case).
You need to set the override character set because, in the messages from your application, the character set defined in the message headers conflicts with the character set used to actually encode the message body. It forces DevTest to use Windows-1252 to decode the message body regardless of what the message's character set header says.
Alternative solutions would be to either change your application to send 1252 in the character set header, or change you application to use UTF-8 when encoding the message body.
> Will it change character as 1252 if we send request format as any other except 1252?
I'm not sure I understand the question. If you send a different value in the character set header while still encoding the message body the same way then it makes no difference; override character set overrides whatever the message header's character set is. If you actually encode the body with a different character set then you will either have to change the override character set in DevTest or, if it now matches the message header character set, remove the override character set from DevTest.
> 2) if we change msg.characterset=1252, then is it also mandatory to set msg.encoding as well?
msg.encoding controls how numeric header values are encoded. It has nothing to do with the message body character encoding.