A woman alleged to have been sexually abused by the principal of a strictly Orthodox Jewish day school in Melbourne has been awarded £588,000 in damages.

Hadassah Ehrlich sued Adass Yisroel School alleging that headmistress Malka Leifer abused her from 2002, when she was 15.

Ms Ehrlich's two sisters, who also attended the school, claim they were also abused by Leifer.

Justice Jack Rush said in Melbourne's Supreme Court that the actions taken by the school in helping Leifer flee Australia in 2008 were "deplorable and disgraceful".

The allegations emerged shortly after Leifer left the country.

The school was also criticised for failing to contact police.

Leifer has been arrested in Israel. She may be extradited to Australia to face 74 charges of sexual abuse against girls at the school.

Justice Rush found the school liable "for the former student's pain, suffering, loss of enjoyment of life, economic loss, and past and future medical expenses" .

He awarded Ms Ehrlich a total of £588,000 in damages, mostly payable by the school, with £69,100 to be paid by Leifer.

Adass Yisroel School would not comment.

In response to the Supreme Court decision, the President of the Jewish Community Council of Victoria (JCCV) Jennifer Huppert stated: "Although the Adass Israel School is not affiliated with the JCCV, events at Adass concern all members of the community.

"The JCCV believes very strongly that Malka Leifer must be brought back to Australia to face justice. It is critical for the sake of the victims and for healing to be able to take place.

"We are pleased to note that the school has been working on improving policies and procedures regarding child sexual abuse. We hope that the administration of the school uses this knowledge to ensure a safe and secure environment for the children in their care."