Penalized for being honest : FlipKart.com : Mobile Exchange Program

So the story goes I ordered a Phone from flipkart.com under their exchange program Here are the details

1) Order IDOD109117953684087000(1 item)
2) Order Date Tue, May 9th '17 3:33 PM
3) Amount Paid ₹8,949through Cash on delivery


4) New Phone : Smartron srt.phone (Titanium Gray, 32 GB)

5) Old Phone to be exchanged : Leeco Le1s (for which I was offered INR 4150 - 100 (Pick up charges) ) Which too was purchased online on Feb2016 (So just 1yr, 3months old, and barely 3months out of warranty)

6) The Terms and Conditions mention
The exchanged phone must have
A) IMEI which is specified during the purchase
B) No Phy Damage
C) The Phone must turn on on its own without a charger for 30sec


All the above criteria were met and The delivery phone was satisfied with his checks

Then I honestly told him that phone reboots sometimes. It happens randomly

To which he politely declined to accept the exchange

I spoke to contact center too, and they too told me, that the delivery boy followed the protocol

But my question is, Why not update your terms and conditions to reflect what he did as an additional step in the checks and balances

I honestly told the delivery boy as well as the contact center that I am paying the price for being honest.

In the end, I still stay by my words, Disappointed with Flipkart's Term & Conditions. No guise against the delivery boy or the Contact Center.

FlipKart pls introspect. I had to pay the price for being honest.