There should be no need to do all that. More than likely the process is being blocked by some other process, have you checked for blocking? (sp_who2)

Having said that though, I would get rid of your explicit transactions and rollback stuff code it this way:

declare @resultMessage

BEGIN Try

UPDATE Table1

SET

Col1 = @State,

Col2 = Getdate(),

Col3 = @Error

WHERE Col4 = @MessageID

set @resultMessage = 'SUCCESS'

END TRY

BEGIN CATCH

set @resultMessage = ERROR_MESSAGE()

END CATCH

select @resultMessage as Result