West Bengal Housing Co-operative Dispute

1. Housing Loan was taken jointly by 7 members of a 12 member Co-operative Housing Society from West Bengal State Co-operative Housing Federation Ltd. Disbursement happened in 1983 - directly to Society. 2. Society has been thoroughly mismanaged. Since 1982 there has been no audit of its accounts. This has been accepted by Govt (Co-operation Department) through inquiry and subsequent order. 3. The aggrieved party here is the legal heir of one of the founding members of the society. He was one of the loanee members. Society neither gave him the loan money received from HOUSEFED nor completed his flat. He appealed to HOUSEFED in 1984 that he is willing to liquidate the HOUSEFED loan (his part) out of his pocket since he feared (correctly) that the society would not pay the same back to HOUSEFED. 4. HOUSEFED denied this appeal on the plea that they do not maintain individual loanee accounts. Since then (1984) neither HOUSEFED, nor the Society, nor the government has given the concerned founding member (and after his death his legal heir) any single amount as payable on account of the full and final liquidation of the HOUSEFED loan. 5. What is the best way to resolve this? Can someone be legally termed a defaulter if no institution is able to stipulate the "alleged" amount at default? Please note that the "alleged defaulter" in this case has tried paying back the loan since 1984!!