Hi Atikur,
Your title, "Can I vary my application...Emergency help needed". May I please highlight here that it was an error on your part to start off a thread with "Can I vary my application...". You are not varying your application but trying to secure an ILR on the basis of your decision for FLR (FP) already been made as - ve (negative, meaning refusal). How can you vary an application when a decision had already been made to refuse your FLR (FP), further more ending up in court with appeal date been heard. Your title "Can I vary my application...."would attract people who are trying to vary and hence you wouldn't be able to get the desired opinion from the crowd.
Secondly, may I ask please who on earth suggested you to submit your original LIUK pass test certificate with your FLR(FP) application. You should had only submitted your, current original valid passport, copies of degree, FLR(FP) form, and a reference letter from a UK citizen. I applied for my FLR (FP) with FLR(FP) form, copies of my degree, latest passport only (with copies of each and every page of the current passport kept with me before sending out the FLR(FP) and a reference letter from UK citizen.
One of your absence was 172 days. Are you sure its 172 consecutive days and not 180 days (6 months). I suggest you look into this absence carefully and calculate again using
http://www.timeanddate.com/date/duration.html, cause if its more than 180 consecutive days then you may fall for refusal.
You did not mention earlier that you have dependents in UK. This makes it bit difficult for myself to form an opinion for yourself, as I am single in the UK with no dependents. hence any solid opinion I can form would be for somebody who dosen't has dependents. But as a general rule of thumb, I can just guess that your wife dosen't needs to do LIUK or B1 etc at the moment as she will continue to be your dependent where you apply for SET(LR). You would however need to include her in your SET(LR) application stating her and your baby as your dependent. Does your wife needs to apply separately on any other form like SET(M) etc is something which is beyond my knowledge for UKBA rules, something which a competent solicitor can advise you.
You stated that your income is well enough to sponsor her. In that case may I strongly recommend that you seek urgent legal advice and by legal advice I mean get a good competent solicitor and stick to their valuable advice. I can see why the solicitor whom you approached recently, recommended you to send in your application by post instead of going for PEO( same day premium service). He must have recommended PEO cause one, you have dependents, secondly your current valid passport and LIUK test certificate is with the UKBA.
You need to ask your solicitor if applying by post for SET(LR) would cover you for 3C leave especially where you have received a refusal for FLR(FP) from HO. My guess is you might not be able to continue with work until a decision from HO is received for your SET(LR) to gain ILR. This could potentially mean couple of months (4 to 6 ) before you get back to work. I can see that you will get your ILR, but how long will it take to decide you application depends on the complexities in your case, like previous refusals, court hearings already taken place and the decesions the court made, number of dependants etc.
One thing is again very confusing, you stated,
Refused visa once against flr(o) back in 2012 but varied the application becore refusal and subsequently received my PSW.
You say that you had refusal against FLR(O), meaning you got a refusal decision for FLR(O) and then you also say that you varied your FLR(O)
before refusal. How is that possible. That again is very confusing.