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CPC Ottawa received the passport on 16th January. Since then I haven't heard any acknowledgement or update on the email. I've pinged 2-3 times. Scary situation as I am flying in exactly 2 weeks from today.
 
Finally on 28th January I got a call from them saying they are not able to locate my package. I gave them proof of delivery which showed it was signed by S Schuiteboer. I learned that that's a mail receiving and sorting company that works for IRCC.

Today is 30th January and they are still searching for the package. I hope they find it today, because for me countdown has begun.

I have no clue why they aren't able to find the package. Looks like my application is running through all sorts of issues. Luck is really against us.
 
Just an update on the case. They found the passport on 30th Jan and processed it the same day and it was picked up by Canada Post on 31st Jan early morning. We are just waiting for delivery. It looks like it is going to be delivered on the same day, as we are flying to Canada. Hope there are no exceptions in delivery by Canada post