Seeking pre-arrest bail for his client, Tulli's lawyer contended that the devastating fire at the Kamala Mills compound on December 29, which had claimed 14 lives, had started from the adjoining 1 Above pub.
Hence the owners of Mojo's Bistro could not be blamed for the tragedy, he argued.
However, the prosecution said that a report of the Mumbai Fire Brigade as well as eyewitnesses said the fire had started at Mojo's Bistro.
The husband of Parul Lakdawala, one of the fire victims, had filed an intervention application, opposing the anticipatory bail plea of Tulli, saying that the latter was responsible for the death of his wife and others.
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The police have already arrested Yug Pathak, a co-owner of Mojo's Bistro.
Pathak, the son of a retired IPS officer, and Tulli, a Nagpur-based businessman, were booked under sections 304 (culpable homicide not amounting to murder), 338 (causing grievous hurt by act endangering life and personal safety of others) and other relevant provisions of the Indian Penal Code.
The three have now been arrested and remanded to police custody.
On December 29, the fire had swept through 1 Above and the adjacent Mojo's Bistro resto pub at the Kamala Mills compound here, resulting in the death of 14 people.
A magistrate's court today extended the police custody of Pathak till January 17.
Seeking an extension of the police remand, the prosecution argued that Pathak must have known about Tulli's whereabouts and upon his arrest, the police would bring the two face-to-face for interrogation.