Money borrowe on ancestral property

Hi legal advisors My grand parents have expired during my fathers childhood days with out making any will on their property. Recently 7 (2009) yrs back due to urgency my father with out notifying any of the family members have borrowed 70 k by putting papers of the ancestral house at a local money vendor with terms saying that the amount would be repaid with in 3 yrs (i.e by 2012)@ 1rp interest which my father failed to do so and he did not even pay single penny to the vendor during this period But after the 6 months (in 2012) my father went o repay the amount and interest totaling to 1lac . But the vendor has said that he had filed a case in the court of law then , and so he asked to pay additional 40 k which he has incurred as court expenses Now very recently (march 2016) we have approached him to take the one lack and give back the papers but the refused for the same and asked to pay 1.6 lacks to the date. i have no idea of how to move and take decision Can any one please suggest an advice of how to move Note , neither we the grand children nor my mom have made any sign during the transaction,