You can find clean 2009 or 2010 Model Honda City M/T. Don't Go for Civic. You can also find 2006 or 2007 Model Honda Civic in 1.2 million. But Honda city will give you best fuel avarage, less expensive in parts and service then civic.
But as it's your first car, i will suggest you to go for new car. Wagnor VXL fit well in your budget. Lifetime token, Good AC and 20km/Ltr avg with in City. And you don't have to visit mechanic again and again.