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It cited concern for the protection of three witnesses, expected to testify, for its decision.
All the judges agreed that Agaib Singh Bagri, a mill worker, should stay in custody while the case goes to trial, expected to begin in 2002.
Bagri and Vancouver millionaire Ripudaman Singh Malik were refused bail by the British Columbia supreme court after they were charged with first-degree murder. Malik did not appeal his initial bail denial.
Both have been in custody since October 27.
Malik, 53, and Bagri, 51, face charges of first-degree murder, conspiracy to commit murder and attempted murder of passengers and crew of Air-India flight 301, which was the destination of bags which killed two Japanese airport staff.
The explosion occurred an hour before Flight 182 went down.
All 329 passengers and crew aboard it died when the plane crashed into the ocean off the coast of Ireland.
Bagri is also charged in a 1988 assassination attempt of newspaper publisher Tara Singh Hayer. Hayer was killed in 1998 and the police are investigating the case.
The Canadian authorities are also seeking permission to frame charges against Inderjit Singh Reyat, who is serving a sentence for his role in the bomb at Tokyo airport.
Agencies
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