Gangland matriarch Judy Moran will continue to eat regular prison food after losing a bid for transfer back to the cottage-style accommodation where she can cook for herself.
The 71-year-old was in April moved against her will from the open-style Margaret Unit to a single prison cell amid claims she was "exercising an unhealthy level of influence" over some prisoners at the Dame Phyllis Frost Centre.
She took the Department of Justice and Corrections Victoria to the Supreme Court of Victoria last month, fighting to be moved back to her more comfortable accommodation.
One argument was that Moran, who uses a wheelchair and has health issues, wasn't receiving her medically required "low fat, more vegetable and fibre diet" from the standard prison kitchen.
Justice Michael McDonald on Monday dismissed Moran's application, saying the decision to transfer her was administrative.
He also said Moran's need for a special diet did not necessarily mean she had to live in the Margaret Unit.
Moran was in 2011 sentenced to a minimum 21 years in prison for arranging the murder of her brother-in-law Des Moran.
She was initially placed in the Margaret Unit, where prisoners prepare their own food and do their own cleaning.
Corrections Victoria lawyer Liam Brown last month said authorities moved Moran after she failed to report a prison knife incident between two inmates.
Prison correspondence also alleged Moran told inmates she was "well connected".
But Moran's lawyer Rachel Walsh argued Moran, who denies the allegations, never had a chance to address the claims and should have been allowed to do so.
Justice McDonald said it was the prison's decision where Moran was to be housed.
"The fact that Ms Moran was not given an opportunity to respond to allegations prior to the transfer does not mean that there was no power to transfer her from the Margaret Unit," he said in his judgment.
Moran has been ordered to pay the department's legal costs.
Draped in a pink shawl, she watched the judgment via a video link from prison.
