Hi Gourav,
I think update terminated error has two reasons:-
1. System Update not active and hence being terminated.
Go TO SM13 and check whether System Update is Active.
2. Click on ToBeUpdated and execute, then in the next screen you can find some list of documents that are not updated and causing error .
Click on MODULES in the screen and check what is causing the error.
If possible check for Code Extracts/FM/User Exits which might be missing.