Thx for your input venky321, appreciate it, but, I do hope they can process application from B2 holder based on the following info: http://www.americanlaw.com/albertapnph-1b.html#
At the end of the link, it says:
"It should be mentioned that IRPR 11(1)(a) also permits applicants who have fallen out of status in the United States, after satisfying the one year requirement, to apply at the Canadian consulate in the United States."
Why would they accept application from applicant who is out of status and reject B2 holder? Nevertheless, I will check if they can process my application.