FLR Rejection : Appeal made : Suggestions needed

[sam1000s]

Last Work Permit & FLR

26th Jan 2005 to 26th Jan 2007

Applied Visa Extension FLR on 26th Jan2007 (EMP1 LTD)

A new Work Permit Application by EMP2 LTD on January 2007
since they came up with good offer I said yes…
but I didn’t bother much about the result of
this new WP since I was simply looking for
the extension of my then employment.

HO didn’t reply for the FLR extension application.

Since I lost hope with my then employer and
the new employer who applied for the work permit
I simply moved to another reputed company EMP3 Ltd.
They accepted my skills and applied for the Work Permit.
My Passport was with the HO by that time so
they applied for an in-country application
and got approved. (Application sent to HO on 1st June 2007)

The HO simply sent my Passport back on June 4th 2007,
stating that the there is no particular immigration documents

I applied for an appeal and the hearing is on July 31st.

Can I conclude that the employer was correct
in applying the In-country WP Application since
my FLR application was pending with HO by that time?

Suggestions needed
Thank you