In this paper, we present a novel method based on active contours for segmentation and fuzzy rule based classification of microscopic images of esophagus tissues obtained from the abnormal regions of human esophagus detected through endoscopy. This method is used for classification of Squamous Cell Carcinoma (SCC) of esophagus, namely, well differentiated (WD), moderately differentiated (MD), and poorly differentiated (PD) SCC. The multi-grid active contour method is used for cell nuclei segmentation, three geometric features are used feature extraction and a fuzzy rule based classifier is built for classification of SCC. The experimental results demonstrate the efficacy of the proposed method.