Hearing the appeal made by the Tamil Nadu government against the single judge's order, a two-member high court bench set aside the former's order.
The high court bench chaired by Justice Dharma Rao has nullified the revocation of the ban on the film by Justice K. Venkataraman Tuesday.
"The film stays banned as of now and it can't be screened across Tamil Nadu," Justice Dharma Rao said.
The court has asked the state government to submit its responses by Monday.
The Madras High Court Tuesday ruled in favour of "Vishwaroopam" and revoked the ban by the state government. It, however, said the administrative step was to be taken by the government.
"Vishwaroopam" was due to release Jan 25, but was banned following objections from certain Muslim groups, who claimed that the film portrayed their community in a bad light. Apart from Tamil Nadu, the film was banned in Andhra Pradesh and Kerala.
Kamal Haasan agrees to modify
All this happens when Kamal Haasan has agreed to modify his film "Vishwaroopam" following objections from certain Muslim organisations.
"My Muslim brothers have written and to me and we have settled amicably. I have agreed to modify some scenes. 'Vishwaroopam' is not an anti-Indian Muslim film, it is pro-Indian Muslim film," he said.
"There is no difference between me and my Muslim brothers. It is our duty to take care of them. There are four scenes that are being pointed out and I am willing to remove these scenes from the movie," he added.
The film written, produced and directed by Kamal, was banned by the state government after some Muslim groups complained that the film portrayed their community in a bad light. Apart from Tamil Nadu, the film was banned in Andhra Pradesh and Kerala.