Decline Warranty Assessment

I have a contract with MTN which i took at MTN Northgate on 13 October 2021 for Samsung Z fold 3,and on the 27th of December 2021 i realized that the inside LCD screen is faulty with lines on it and on the 29th of Dec i took the phone back to the Northgate branch for warranty assessment where the manager by the name of Terresa received my phone

And i waited for the response for my warranty assessment as from then until i called them on the 11th January 2022 where they told me that my warranty assessment has to be rebooked because they didn't have all the paperwork in order so i waited again till the 14th February 2022 where they told me that warranty assessment has been declined after they sent it for the 2nd time on the 5th March 2022 saying that the handset has scratches,,which i dont understand why so now i have left the phone with them and am still paying the contract

Samsung ZFold 3 5G Imei#*** ***

Northgate Branch SABC Code 1783