Jeeves.co.in - Tv defect during extended warranty

I had purchased a vu tv ** inch led from flipkart along with extended warranty on *th october ****. in december **** my tv started having issues, i called the helpline for help. After * days of pestering they finally sent a technician who opened tv and said panel needs to be replaced. Now today on **th dec **** i get a mail from jeeves saying tv cant be repaired and i have * options
*. either take refund of just ***** as thats the depreciation amount calculated by them.
*. Take replacement tv with no warranty.
Both the above solutions make no sense as they claim that extended warranty will be void after this incident. Why the consumer has to suffer if the defect is in the product and despite paying full amount for extended warranty doesnt this mean they are committed for * additional years to provide service? How can this just be cancelled after *st issue of the product. Pathetic service by jeeves.