Hi,
Here, I feel the HR Generalist should intervene and mediate to try to resolve this issue. Most importantly, the level needs to be skipped, and the newly hired guy should take it up with Ratan Tata directly, expecting intervention. If HR can't get a fair deal for himself, what protection can he provide to other employees?
The guy who got fired should take it up, and if he doesn't get a fair deal even after escalating the issue, he should seek refuge in industrial courts.
Life doesn't end with just one job ending. There are so many other career options. He can, in fact, get the media involved, highlight the autocratic behavior of MDs/Industrialists. He should go ahead and produce a movie on this and get the attention of the Ministry of Labour and Industry.
These are purely my thoughts, which are very rebellious. The guy knows his situation best and can decide the course of action. Dignity is more important than money, and one should fight for self-respect. We are all going to die one day, but we should die with respect. Once again, no offense meant to anyone; these are my thoughts at the very instance after reading this.