A division bench of justices P K Bhasin and V P Vaish denied bail to 85-year old Bhagmal, who was held guilty along with two others in a 1984 anti-Sikh riot case.
On April 30, the trial court had acquitted Congress leader Sajjan Kumar in the case but awarded life term to Captain Bhagmal, former councillor Balwan Khokkar and Girdhari Lal.
The court also awarded three years imprisonment to two others -- former MLA Mahender Yadav and Kishan Khokkar.
The convicts have filed their appeals before the High Court while the Central Bureau of Investigation (CBI) also filed its appeal demanding death sentence for the trio saying they were engaged in "planned communal riot" and "religious cleansing".
According to prosecution, five members of a Sikh family - Kehar Singh, Gurpreet Singh, Raghuvender Singh, Narender Pal Singh and Kuldeep Singh, were killed by a mob in Delhi Cantonment's Raj Nagar area during the riots.