This paper presents a novel image encryption scheme based on cellular automata (CA) and chaotic logistic mapping. The logistic chaotic mapping is used for shuffling the pixels which results in permutation. This permuted image is converted into a binary stream image where each rows of the image are converted into binary streams. Then a hybrid cellular automata (HCA) is used to provide diffusion by local interaction of the adjacent bits by applying various CA rules in the permuted image and confusion is brought by the cellular automata rules and keys from pseudo random number generator. In this scheme both reversible and irreversible cellular automata are used where irreversible cellular automata are used as a Pseudo Random Number Generator (PRNG) and reversible CA is used for diffusion. The properties of the encrypted image such as entropy, correlation coefficients, histogram, key space and key sensitivity prove that the encryption scheme is highly robust against attacks and also reliable in transmission loss scenarios.