Florentino Floro was appealing against a three-year inquiry which led to his removal due to incompetence and bias.

He told investigators three mystic dwarves - Armand, Luis and Angel - had helped him to carry out healing sessions during breaks in his chambers.

The court said psychic phenomena had no place in the judiciary.

The bench backed a medical finding that the judge was suffering from psychosis.

'Dwarf dalliance'

The Manila trial judge had asked the Supreme Court to dismiss the complaint and return him to the bench, after being sacked in April.

From obscurity, my name and the three mystic dwarves became immortal

Florentino Floro

"They should not have dismissed me for what I believed," Mr Floro told reporters after filing his appeal in May.

The judge said he had made a covenant with his dwarf friends that he could write while in a trance and that he had been seen by several people in two places at the same time.

Judge Floro reportedly changed from blue court robes to black each Friday "to recharge his psychic powers".

In a letter to the court he said: "From obscurity, my name and the three mystic dwarves became immortal."

However, the Supreme Court said dalliance with dwarves would gradually erode the public's acceptance of the judiciary as the guardian of the law, if not make it an object of ridicule.