The Supreme Court on Tuesday struck down the law that was set to go into effect next month on a nationwide basis, saying it violates fundamental rights.
The Court had earlier rejected the constitutionality of the law on grounds that it would harm minorities.
But the court said it would consider petitions challenging the law.
The new law will be enforced from January 1, the Supreme Court said.
It will be the first time that a law has been struck down by the court on the grounds of discrimination.
It will also be the second time in a year that a court has struck down a law in the name of equality.