The court stayed the ban against dance bars on the condition that performances will not be obscene.
Bhandarkar, who made a film "Chandni Bar", set in the backdrop of Mumbai's dance bars, welcomed the decision.
"Welcome move by the Hon. Supreme Court to put the ban on hold for Dance Bars in Maharashtra," he tweeted.
Film producer Pritish Nandy hoped that the latest decision by the court will help in rehabilitation of dancers, who went jobless after the government ban.
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Actress Konkona said it was a welcome decision because ban is not the right solution.
"It is fantastic that the ban has been lifted. If people want to watch women in dance bars then it should be allowed. I really don't believe in bans. It is important to be tolerant, have a conversation and not ban things," she said.
Actress-filmmaker Pooja called it a progressive move.
"Progressive decision by the SC!Bravo! Dance bars to reopen in Maharashtra as SC puts ban on hold.