Governments will do everything they think is a good move for them. If that means banning Bitcoin in whatever shape or form, they will do it without hesitation. Governments should understand that banning Bitcoin isn't an option, because the only thing they are doing is driving the market to go 'underground' (i.e. peer based trading), which means that the government will lose control entirely. In easy terms, people will always be able to buy Bitcoin or other crypto currencies, which is something that can't be stopped. Regulations allow governments to somewhat know what's going on, who owns what, where does the invested money go to, etc.
It's like saying if you can't beat them, join them. Banning bitcoin would just make people transact it hidden in the government's eyes which would make it harder for the officials to track the activity of the people. If they would just regulate it then they would know what is happening and they can have funds from it as well whereas in banning it, they wouldn't have any share from the transaction.
There is an increasing interest of bitcoin in India so if in case the Supreme Court would decide to ban it, some people may stop using it but there would be some who will continue and they will be force to go underground which would be disadvantageous to the government.