Hello Sohil,
The short and simple answer is yes it will work. Partitioning can be used in single and multiple-host systems.
Table Partitioning - SAP HANA Administration Guide - SAP Library
Q) What type of partitioning did you use ?
A)
Now to better understand why you are getting OOM it would be helpful if you uploaded the indexserver trace file and also the rte dump.
In parallel I really would suggest you open a message with SAP as they can at least logon to your system and have a look as opposed to SCN members who can only try and answer questions based on the info you give us.
KR,
Amerjit