Correct tense: [has/had passed away]

I have made up the sentences below.

(1) I met John yesterday. I was sad that his grandfather has passed away.

(2) I met John yesterday. I was sad that his grandfather had passed away.

Some of my non-native English friends think the simple past "was" goes well with the past perfect "had passed" if he died a long time ago. But, my other friends think the present perfect "has passed" can also work if he died recently. I am not sure who is correct. Please help me. Thank you very much for your help.