Happy Easy go - Refund not provided for flight cancellation

I booked a flight ticket with free cancellation option for Nov **. Due to personal reason I have to cancel the ticket and raised refund request as per free cancellation policy( I paid higher ticket price for this). The flight operator refunded full amount to Happy Easy go but they are not passing the refund to me. Refund processed by Happy easy go is zero rs. They denying refund by claiming that by mistake they provide higher discount at the time off booking so refund is adjusted against discount and do not expect anything. Customer executive says that you are lucky that you did fly with other booking.