Uh...your lawyer is flat out wrong.malikhashmi said:Spoke to my lawyer - he confirmed that once we apply for PR from within Canada - the status is implied till the time a decision has been made. No further visa extention is required till the time CIC gives a decision. Please confirm if this is the correct understanding?
The only way for an Inland applicant to get Implied Status, is if they include an Open Work Permit with the Inland application. If the applicant has legal status on the day that CIC receives the application(s), the applicant will be covered under implied status.
If a person submits the above and does NOT have legal status, they will not qualify for the OWP and will NOT have Implied Status.
Since you said that your visa expired on July 7th, there is no possible way for you to restore your status from within Canada.