10 Or - Tenor — 10 or g - unreliable phone with unreliable service who rejects warranty claims due to a small scratch in the back panel of the phone

The top part of the Display touch wan not working (Notification area and little below that) - Bought the phone 5 months ago and it was under warranty at the time of booking the service request.
Booked a service request trough servify.in (Who is the service facilitation partner for 10 or) as 10 or has a very limited service center across the country. While tracking the service status they were trying to charge me for the replacement of the faulty part.
I have escalated and sent an email to the [protected]@servify.in and it took 2 - 3 days to get reply from them. The service center claimed that they are refusing the warranty claim due to a small scratch/dent on the back panel (Which is a very little scratch and wont even visible unless if we have a very closer look) and there was no damage or not even a scratch in the display.
the thing is the service center claimed that this small scratch causes the touch sensor malfunction which is embedded into the display and the display is intact.

I would have accepted their claim if they said that even a small scratch would make the warranty void, instead they said that this small scratch is causing the touch sensor malfunction so they are refusing the service under warranty.

A small dent won’t affect or interfere with the touch sensor operations which is embedded into the display (I have seen and used many phones which had a display damage and the touch sensor was working perfectly though the display is damaged and never seen a phone in my life time that the touch sensor stopped working because of a small dent in the panel, to be honest my previous phone had a head bent completely like a curved phone and the touch sensor still works perfectly).

Moreover the dent happened last year immediately after I bought the phone and the touch sensor was working fine till 3 weeks ago. This is the first time I am hearing the support or service center claims a small dent on the panel would cause the touch sensors malfunction even though the display is intact. for the reference I have attached the image of that scratch/dent (as I said one need a closer look to see this in reality)

Even if I accept the service centers claim, now there is a dent in the panel and how would they assure me that the new display would be working fine after the fix as they said the panel dent is interfering the touch operations LOL! The dent should still be interfering with the touch operation after the new display is put in place right?

I didn't take the paid service and asked them return my phone back to me as I don't want to my money anymore for an unreliable product and most of all unethical service by 10 or.

Finding a reason (no matter how silly it is) to refuse a warranty service is not a customer centric approach.