Kolkata-based Damani rallied from a 0-2 deficit to surge to a 3-2 win in a must-win contest that served to shunt out young Delhi cueist Pushpinder Singh, who would have sneaked through from Group C, had Damani lost.
Following the early advantage, Chandra frittered away a golden opportunity to snatch the crucial fourth frame and the match when he missed the pink.
With the loss, Chandra finished second in the group and will face a stiff competitor in double Asian champion Yasin Merchant in the quarter-finals.
India No. 2 Kamal Chawla of Bhopal also did India junior No. 1 Laxman Rawat of Delhi a favour when he beat formidable Siddharth Parikh of Railways 3-1 in the last tie in Group B.
The win paved the way for the talented Rawat
