Tasmania's Museum of Old and New Art (MONA) closed the lounge after a successful complaint by a Sydney man who was refused entry to the exhibit.
The state's civil and administrative tribunal in April ruled the lounge was discriminatory and gave MONA 28 days to allow men access.
Kirsha Kaechele (left) said the lounge could be reopened as a school to earn a legal exemption. (HANDOUT/Museum of Old and New Art)
The gallery in May announced it would appeal the decision in Tasmania's Supreme Court, arguing the exclusion of men was part of the artwork.
MONA believes the tribunal erred on several grounds, including finding the thrust of Ms Kaechele's evidence was that the lounge was a response to historical disadvantage faced by women.
In documents lodged with the court, the gallery says the tribunal failed to consider evidence that gender imbalance and the societal disadvantage of women was ongoing.
It says there remained a "continued existence of spaces associated with power such as elite men's clubs", that "power in the world lies with men" and there was "supremacy of men in the world generally".
The gallery wants the tribunal decision set aside - a hearing for the court matter has yet to be set.
The tribunal also erred by determining the lounge did not promote equal opportunity when it was designed to provide a space free from the supremacy of men, MONA argues.
Artist and lounge curator Kirsha Kaechele previously said it was worth appealing the tribunal decision for the good of art and the law.
MONA says a tribunal failed to consider ongoing gender imbalance and women's societal disadvantage. (Lukas Coch/AAP PHOTOS)
She said the lounge could be reopened as a "church", "bathroom" or place of "education" under exemptions to discrimination laws
"We might allow (men) in on Sunday - and this would be part of our engagement (with an exemption) … as a school," Ms Kaechele said in May.
"Perhaps women could bring their laundry in and every Sunday we could allow the men in for a few hours of instructions on folding and ironing."
In mid-July, the gallery revealed several "Picasso" pieces moved from the lounge to the women's bathrooms were not originals but instead painted by Ms Kaechele.
Ms Kaechele, the wife of MONA owner David Walsh, had previously claimed the paintings were inherited from her great-grandmother who knew the Spanish artist.
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