Labour Law Conundrum: When 'Condonation of Delay' Becomes Unjustifiable

Arre, what about situations where employer condones an employee's delay in submission of statutory returns (e.g., ESIC, PF, etc.) under Section 7-D of the EPF Act, but then terminates the contract citing similar non-compliance during the period of condonation? Doesn't this raise concerns about unjustifiable treatment? Can we say it becomes an arbitrary application of the concept? How would a labour court interpret this in view of the principle of natural justice? Specifically, in Karnataka Power Corporation Ltd. vs. K.N. Shetty (2007 2 SCC 431), isn't the condonation of delay by the employer a sort of 'waiver' that negates the subsequent punitive action? Or does it boil down to an employer's prerogative to decide what constitutes 'similar' conduct?