If ILR application is refused

[rizwan567]

I am writing down a case study. Which is applicable on many of you here in the forum.

Mr A gets EC (visa) on 1 Jan 2007 valid until 1 Jan 2009
Mr. A lands in UK on 25 Jan 2007.
He get extension until 1 Jan 2012.
He applies for ILR on 28 Dec 2011.
Mr. A's ILR application is not successful (due to 30 extra number of days spent outside UK than allocated quota of 450 or visa is refused for some other reason)

My question is, If ILR application is not successful, does UKBA automatically grants further leave to remain (visa extension). OR the appliant gets the right of appeal and chance of getting visa extension is also over. OR after refusing, will UKBA give option to apply for visa extension instead?

My other question is, What should be best action plan for Mr. A in this situation?

[geriatrix]

See ILR settlement application unsuccessful scenario

Extension is not granted unless an application for extension is submitted and paid for (if approved subsequently, that is).