CITY'S hopes of catching up on lost ground were dashed at Alloa as the Wasps notched a 3-0 victory to hit the top of the Irn-Bru Third Division table.
City, inactive since December 6, fell behind to a Mark Docherty counter in 16 minutes and on the hour mark Kevin Cawley extended Alloa's lead.
A straight red card for the home side's Ben Gordon for a last-ditch lunge on Paul Millar offered City a lifeline, but Jason Crooks' spot-kick was saved Alloa keeper Scott Bain.
City were then hit with a Boxing Day sucker punch as Ryan McCord grabbed a third in stoppage time to avenge the 5-0 drubbing the Wasps suffered at Borough Briggs in early October.
The Black and Whites, who have now slipped to sixth in the table - albeit with three games in hand over the new leaders - will have to lick their wounds and regroup ahead of the January 2 trip to bottom dogs Peterhead.
Alloa Athletic: Bain, James Doyle, Gordon, Harding, McHattie, Docherty, Young, Ryan McCord, Cawley (Forrest 65), May, Holmes (Masterton 80). Subs Not Used: McDowall, One, Winters.
Sent Off: Gordon (64).
Goals: Docherty 16, Cawley 59, Ryan McCord 90.
Elgin City: Clark, Niven, Duff, MacPhee, O'Donoghue, Crooks (Lawrie 73), Beveridge, Nicolson, Moore, Gunn, Cameron (Millar 61). Subs Not Used: Calder, McLean, McHardie.
Booked: Niven, Clark.
Referee: Paul Robertson