The convict did not accept the court's offer that he can be allowed to attend the function in custody saying the accompanying cops will be an "embarrassment" for both the families.
"I would rather prefer not to attend. I am withdrawing the bail application," Vishal's lawyer told a bench of justices Gita Mittal and J R Midha.
"We cannot grant you anything more than this. You are here at the last moment. We can only send him (Vishal) in custody. If you are agreeable to this then we can see. We can grant you custody parole," the bench said.
"The sentence cannot be suspended at this stage as appeals are pending," the court said.
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"We have no problem, if the appellant is granted custody parole," he said.
The court also said that the Delhi Police response is very "reasonable, if you want to withdraw its your choice".
The high court, on April 16 last year, had reserved its verdict on appeals of the three convicts against a lower court judgement awarding rigorous life imprisonment to them for abducting and killing Katara in 2002.
The Yadavs allegedly killed the victim as they did not approve his alleged affair with their sister Bharti Yadav.
Vikas and Vishal were convicted by the trial court in 2008.
Their accomplice Pehlwan, who had absconded for some time but was arrested in 2005, was tried separately and sentenced to life term by the trial court.