Currently Being ModeratedJan 29, 2013 7:11 AM (in response to Sijith-Ajith)
That's not normal.
The update process doesn't care if your app is running, suspended or any other state.
The old app's bundle is replaced with the new app bundle.
It sounds like the new version of your app isn't coded properly.
Currently Being ModeratedJan 29, 2013 7:45 AM (in response to Sijith-Ajith)
This has happened to me when trying to get an App off the store which had been just approved and made available. There was nothing wrong with the bundle and the new store version was finally downloaded after a couple retries.