Can my H1b which expired in 2010 be renewed now in 2012.

I had a H1b from 2007 Oct-2010 Oct with company ABC. With that I worked in USA from Feb 2008 till Aug 2009 after which I returned to India.

Again in 2010 my current employer XYZ applied for fresh H1b which was rejected.

Now I have come across a situation where a 3rd Company wants to renew my OLD H1B(2007-2010) which still has some years left it it and they said it is possible.

Is this possible?

They can file cap-exempt petition for you. You still have 6 years - time already spent inside US on H-1, available to you. The new employer can file H-1 petition to capture this time.