Looks like Simplicius does not live up to his name...
I'll remind you these are just the ideas I took from the quote.
Well the first idea that struck me as familiar was this...
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...the first principle is neither water nor any other of the things called elements, but some other nature which is indefinite, out of which come to be all the heavens and the worlds in them.
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He is talking about matter.
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The things that are perish into the things out of which they come to be, "according to necessity
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When something is destroyed, the fragments of that thing settle to form something else. Example: A star explodes, giving off elements and materials that will form a new star, or object.
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for they pay the penalty and retribution to each other for their injustice in accordance with the ordering of time"
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...
Injustice is meaning a lack of balance. Because they are not in balance they must conform to time's pattern/law. Their relation to each other under the pattern of time cannot be denied. If it is then "retribution", or returning to a state of balance, will occur.
What a confusing statement though. "Order" can mean many different things. I'm guessing that "retribution" and "penalty" are the results of anything which tests the laws of time.