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H1B, H4 Visa

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H1B Visa not issued due to passport lamination peeling off
I had appeared for H1B visa interview where I received the 221(g) letter requesting me to submit various documents (employer sponsorship letter, resume, details of US job etc).
After 2 weeks, my case number (AA00 YYYY XX) appeared online on http://mumbai.usconsulate.gov/case-status.html
I submitted my passport the same day to the dropoff location. After 4 days, I received back my passport where I was hoping to find my visa in it.
To my shock, there was no visa. An additional 221(g) letter was included requesting me to submit a new passport. Few people informed me that this happened due to the lamination in the 1st page of the passport was peeling off, hence, the passport is considered "damaged".
I am currently racing to get a new passport so that I can re-submit and avoid extension of my stay in India.

My question is the following :

1. After I submit my new passport, I would like to get it back asap. Instead of submitting it in Pune (my hometown), I would like to submit it in Mumbai OFC and choose it as the document pickup location. Does anybody know if I submit the passport in Mumbai OFC at Monday 10am, how long will it take for me to receive back the passport? Same day or next day?

2. Has anybody experienced a similar situation before? Can anything other than "lamination peeling off" be the reason of the passport being rejected?

Thanks
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