method1
-T, --temporary-directory=DIR
use DIR for temporaries, not $TMPDIR or /tmp; multiple options specify multiple directories
$ sort -T /home/jadu/ -t "|" -k5 ka.log.32323112.out > ka.log.32323112.out
method2
Another way would be : export env variable TMPDIR to some directory which have sufficient space.
e.g.
$ export TMPDIR=/path/to/other/directory
$ sort -t "|" -k5 ka.log.32323112.out > ka.log.32323112.out