Thank you all for your responses. I went through some of the previous threads and looks like there were some cases where people had to get rid of their entire collection because the infection was spreading really fast like wildfire. I also remembered in one of the Fredmeyer stores I had seen the same kind of pitting on a bunch of orchids probably because the infection must have spread through contact or close proximity. I'm not sure if the problem with this orchid was mesophyll cell collapse or some other fungal/bacterial infection. But I had to make the tough call to get rid of it rather than to risk loosing all my other orchids

I've learnt an important lesson to avoid buying clearance orchids with any kind of leaf damage.