Multiplexing 2-Seven Segment Displays using ARM 7
You're turning individual segments on, but never turning them off again, so the result is that you show a 1 and a 2 superimposed on both displays.

Change your IO0CLR = T1 and IO0CLR = T2 statements into IO0CLR = 0x000001FF to turn off all the segments as well as both common anodes. Then your outputs will be ready for the new segment patterns to be set up.