"Please think where the film industry is going. You are teaching indiscipline to children," a division bench of Chief Justice D Murugesan and Justice V K Jain said.
They were hearing a PIL alleging that the film was vulgar and showed nude scenes. It sought a ban on the movie.
The court's observation came after the counsel appearing for the producers and director of Race 2 said the Central Film Certification Board (CBFC) had already cleared its release.
The court sought response from the ministry of information and broadcasting, CBFC and Delhi government and posted the matter for Friday.
The petition was filed by social worker Teena Sharma.
The court had earlier directed the central government to consider the plea against Race 2 and take appropriate action within a fortnight.
Sharma moved the court again after the government failed to act.
She said she was deeply hurt by the nude scenes and dialogues with double meaning after viewing the film in a theatre.
Challenging the U/A certification given to the film, the plea said: "The film has been screened in 50 countries and it has been graded as an adult movie in 40 countries while here it had been granted U/A certification.
"The contents of the film are highly objectionable and therefore the film has got A certification for screening in the US and Britain."
The petition accused the movie of degrading women and displaying them as commodities.
U/A certification is given to films which children above 12 years are allowed to see under parental guidance.