। ॥ ३२ ॥
In plain words
Another means of knowledge blocks the way, and the word's plain sense can no longer be taken. Then the word functions on a second meaning, one not cut loose from the first. That functioning is what is called lakṣaṇā.
Close to the Sanskrit
When, because of obstruction by another means of knowledge, non-acceptance of the primary meaning has arisen, that functioning which operates upon a meaning not made separate from the primary — that alone is declared to be lakṣaṇā.