Thankyou Prashanthi for the prompt reply.
My case of I140 was stuck up with AAO for 3 years and i got the result last week and my H1's last date is Apr 2010, inspite of lot of affort from my side to have a new GC i was ignored by only one answer your case is strong and it will be approved. but this is how it went. Now my lawyer is saying he is very confident that he can get the H1B extended on the basis of the earlier labor approved where I140 was denyed, to be honest there is a case in my company which worked as per this logic. So I wanted to confirm.
Once they apply for H1B extension and i get denial letter, how long can i stay in US. Do they give me a formal notice or is it a law that i should leave the country within so many days.