Shore Energy, which is owned by award-winning butcher Simon Howie, has suggested the council should follow the advice of its own head of legal services, who has said that taking further court action could be futile.
Shore Energy has proposed building a "pyrolysis" plant at Carnbroe, near Coatbridge, and has been granted planning approval by the Scottish Government after North Lanarkshire Council opposed the scheme.
However, the council is seeking to reverse that decision at the inner house of the Court of Appeal, having previously lost one legal challenge.
However, it has emerged that June Murray, head of legal services at North Lanarkshire Council, has advised councillors that the latest court action has "very limited prospect of effective success".
Mr Howie, managing director at Shore Energy, said: "In light of this unequivocal recommendation from its head of legal services, it is evident that it would be reckless for North Lanarkshire Council to appeal last month's approval for our plans and that a decision to do so would be futile and a waste of public money."
North Lanarkshire Council declined to comment on the legal advice it had received.