The issue is that the DB is amongst many other DB on a SQL Server Instance.
Looking at Documentation regarding creating and configuring SQL DB for JIRA, i suspect it is not enough to just fix the collation for the DB, The instance will need to be fix as well or a work around script to tidy up all affected columns of the DB.
I will appreciate pointers and suggestions to fixing this. The Instance been shared by many DB mean that the collation fix cannot be done on the instance.