which is what the op wants. what are you arguing about. The tenant gets his deposit back in full, 3x deposit or if a reasonable excuse on why it wasn't put in a scheme in 14days and the judge accepts it was a mistake and the tenancy is still current the landlord can pet it in the scheme and thus the tenant is protected.
What are you arguing and what is bad? It does not matter one iota if the he tells the landlord or not, like you are suggesting. when he applies for the court case, the landlord will find out and can still choose to pay it in full before the hearing. In which case teh Judge MAY not require any other action.
Its about limiting the landlord time to fix the problem, because once the application form goes to court and the landlord deposits the money after that date he has a better chance of winning compared to the landlord getting the TDS before he applies for a court hearing.
Little things like that count a lot in court.
) initial receipt.