I figured it out myself few hrs. later. All i had to was, load an image into a chunk and then load the chunk into a phrase for header. Below is the code snippet.
IText.Image image = IText.Image.GetInstance(@"C:\ImageLib\Header.jpg");
image.ScalePercent(50.0F);
IText.Chunk ck = new Chunk(image, 0F, 0F);
HeaderFooter header = new HeaderFooter(new Phrase(ck), false);
Thanks for all the minds that thought abt. a solution to my question.