A division bench of justices A S Oka and A A Sayed granted bail to Atif Mulla on a surety of Rs 1.50 lakh.
Atif was convicted by a special court in April this year and sentenced to ten years imprisonment for his involvement in the 2002-03 Mumbai blasts that killed 12 people and injured 27 others.
Soon after the conviction, Atif filed an appeal in the high court and sought bail on the ground that throughout the trial he was out on bail and abided by directions.
Meanwhile, another convict Saquib Nachan, who had also approached the high court seeking bail, withdrew his application after the bench said it was not inclined to grant him bail.
A special Prevention of Terrorism Act court in April this year convicted 10 persons in the case, out of whom three were sentenced to life, four were awarded 10 years imprisonment and the remaining three were handed over two years each in jail.
Between December 2002 and March 2003, there were three explosions in the city with the first blast on December 6, 2002 at Mumbai Central Railway Station, the second blast on January 27, 2003 at suburban Vile Parle, and the third blast took place in a local train at Mulund Railway Station on March 13, 2003.