The fourth seeded Indian pair of Harsh Mankad and Ashutosh Singh lost to the top seeded Australian pair of Adam Feeney and Robert Smeets 3-6, 7-6(5), 6-10, in the final of the Euro 30,000 ATP Challenger grasscourt tournament in Manchester.
The Indo-Czech pair downed Australia's Nathan Healey and Robert Smeets 6-4, 6-2.
Paes and Damm beat Novak Djokovic and Janko Tipsarevic of Serbia 7-6 (6), 4-6, 6-3 at the Australian Open on Thursday.
Prakash Amritraj will next face Kristian Pless of Austria in the quarter-finals of the Shimadzu All Japan Indoor Tennis Championships.
The Australian Open offers wildcard spots for eight men and eight women for the Jan. 15-28 tournament at Melbourne Park.