Meanwhile, the actor agreed to delete certain scenes considered offensive by Muslim outfits.
The relief given to the actor by Justice K Venkataraman late last night was shortlived as a division bench comprising Acting Chief Justice Elipe Dharma Rao and Aruna Jagadeesan quashed it, effectively stalling its release today.
Also read: Kamal Hassan threatens to quit India
The actor now plans to move an appeal in the Supreme Court against the High Court order.
The single judge had granted interim stay of operation of the ban order imposed by the state government prohibiting the film's release across the state after protests by Muslim outfits, who claimed that it showed them in negative light.
The court order came on an appeal by the government against the interim order of the single judge.
Even as the judicial proceedings were on today, Haasan said the issue had been "amicably resolved" during his talks with some Muslim leaders, after he agreed to delete "certain scenes and words" relating to the Holy Quran.
"The film is not anti-Indian Muslims and it is pro-Indian Muslims. There is no difference between me and my Muslim brothers," the actor, who spent nearly Rs 100 crore on the multilingual spy thriller, said.
Upset over the hurdles caused by the ban on the release of the movie, Haasan, in an emotional outburst, said Tamil Nadu does not want him to stay in the state and he might seek a "secular" place in the country or overseas.
During the hearing today, Advocate General A Navaneethakrishnan said the single judge had passed the order without taking into account the fact that the petition (of Kamal Haasan) was not maintainable in law.
The AG also said the judge has not considered the 'important aspect' that the order passed under Sec 144 cannot be assailed by the petitioner as it was done after elaborate and detailed consideration for maintaining public order, preserving public peace, public safety and communal harmony.
After this verdict, movie Vishwaroopam won’t be release in Tamil Nadu till February 6.
Two theaters in Ramanathapuram district in Tamil Nadu have reportedly attacked fro screening the film. Some miscreants hurled the petrol bombs outside the theaters.
Film fraternity bats for Kamal Haasan
Members of the film fraternity, including superstar Shah Rukh Khan, have spoken out in support of Kamal Haasan over the controversy surrounding the release of his film 'Vishwaroopam'.
After the Madras High Court cleared the film's release in a verdict last night, the Tamil Nadu government today filed an appeal against the interim order by a single judge.
The film's screening has been started and stopped on Wednesday in various parts of TN, with an emotional Haasan saying he would leave the state in search of a "secular" place after incurring losses due to the delay in the mega-budget project's release.
"We have all gone through this, we have all faced this. To say the least, it is the most unfortunate thing to happen to a film. I would really like to state, this has happened to my own films. I have done this for 'Billu Barber', 'Om Shanti Om'," SRK said at an event last night, adding that a Censor certificate should mean that the film is fit for viewing all over the country.
"Kamal Haasan is a senior who I have a lot of respect for. My company Red Chillies has done the visual effects in Vishwaroopam. So it is just unfortunate and completely wrong."
South actor Nagarjuna also came out in support of Haasan, saying, "I haven't seen the film, but I know Kamal ji for a long time now and been an ardent fan of him and his work. he is one of the best actors India has produced. I don't think he is a man who would do something to affect communal harmony."
Haasan's good friend and superstar Rajinikanth had spoken in support of the actor-filmmaker when the film was banned by the Tamil Nadu government initially, after protests by Muslim outfits.
Actor Siddharth, who has starred in films down South as well as Bollywood, took to Twitter in support of Haasan.
"Heartbreaking to see the greatest Tamil actor of all time talking about leaving Tamil Nadu, about bankruptcy and about unfair persecution. Vishwaroopam screenings cancelled before starting & even stopped mid show all over TN. What a sad day. What a horrible week. #TalibanTN," he tweeted.
Actor Ranvir Shorey posted on the micro-blogging site, "These powers are meant to protect constitutional values, not selfish political interests. Pandering to ethnic groups of bullies is what divides the nation, not films and books!"
Actor Rajat Kapoor tweeted, "What is this country? Ban this - ban that. Don't allow this one to make films, this one visit a lit fest! Let's call ourselves Bandia!! How come Vishwaroopam has not caused any harm to national unity in the states where it has been released already? When censor board gives a certificate to a film, isn't it valid for the whole country? Or are we many countries??"
"Scary situation where even a CBFC body cant guarantee the certification will be sufficient enough for a smooth run of a film," posted actor Manoj Bajpayee.
Earlier in the day, upset over the hurdles caused by the ban on the release of mega budget 'Vishwaroopam', an emotional Kamal Haasan on Wednesday said Tamil Nadu does not want him to stay in the state and he might seek a "secular" place in the country or overseas.
"When M F Hussain can do it, Kamal Haasan will do it... I am fed up. I am an artiste. After that, I will have to seek a secular state for my stay... Secular state from Kashmir to Kerala, excluding Tamil Nadu... Tamil Nadu wants me out," he said in a choked voice as the fate of the movie is still to be decided in the court.