To workaround this issue:
Open the terminal in the 3.2 Novell Administration Console.
Run the /opt/novell/eDirectory/bin/ndsrepair -N command.
Enter the server number.
Enter the replica option 1 that is Repair all network addresses.
Open the terminal in the 3.1 SP4 Novell Administration Console.
Run the following command and provide user name in the "admin.novell" format and password:
/opt/novell/eDirectory/bin/ndsconfig rm /etc/opt/novell/eDirectory/conf/nds.conf
Provide the admin credentials and proceed with deletion.
Proceed with the migration steps.