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Before the inquiry was adjourned, allegations that Mr Owen abused a female pupil at the school were heard for the first time.
Earlier this year, the inquiry at the University of Glamorgan in Treforest near Pontypridd was due to hear evidence from seven of Owen's alleged victims - five men and two women.
The hearing reconvened with the evidence of a former pupil who said he had been abused by Mr Owen at the teacher's Rhondda home.
He also claimed he was made to dance naked with a friend in front of adults during an A-level practical exam.
Speaking after Sewell's appeal was rejected she said: "I'm very relieved. "You do wonder whether another set of judges will see things the same way, so you have to prepare yourself but I have no doubt - he won't be able to pull the pull over people's eyes any more." The woman who was raped by Sewell also spoke of her relief.
""I'm very relieved that the judge has upheld the sentence," she said. We've only just got used to the idea of him being sent down.
Miss Williams, who teaches at Ysgol Gyfun Rhydfelen, was suspended from work two months ago when the allegations came to light in the inquiry.
He was found dead in a caravan at Trecco Bay, Porthcawl, on the south Wales coast.
The inquiry into Mr Owen, from Tylorstown in the Rhondda, is the first to be held by Mr Clarke, since his appointment in spring 2001.
It follows the Waterhouse report into widespread abuse at children's homes in north Wales.
He was charged with five counts of indecency with boys between 19.
The resumed inquiry has been told the Crown Prosecution Service had refused to give its reasoning to the commissioner for beginning criminal proceedings against Mr Owen.