Hi ajanarth,
Did you renew your passport before surrendering ?
i am in the same situation.My indian passport expired last week but my canadian citizenship file is almost complete. Only waiting for the oath ceremony.
You dont need to have it current during surrendering the passport. https://www.blsindia-canada.com/renunciation_ppt.php
"They must however get their Indian Passport, whether already expired or not, duly cancelled. "
What did you ending up doing? I don't know I am going to apply both at the same time. I have filled out both the forms just waiting for my Canadian Passport and after my travle to the US I will go to BLS and both. I don't know if they will accept it or not. I will share my experience here on what happens.