Inability to pay full and final settlement

Dear Lawyer - I'd like to request your expert opinion on the following issue: Due to complication arising from a pre-term delivery, my wife gave birth to a baby boy who had a severe brain damage. I was working in Bangalore at that time and had to rush back to Hyderabad to take care of my wife and child. Doctors confirmed that the child would be physically challenged for the rest of his life. In this circumstances, I had could not formally complete the resignation process and financially unstable to pay the full and final settlement of close to 50K. My employer was aware of the entire situation and granted leave to manage my family in HYD. Finally I had to quit and moved to HYD. My ex-employer is now constantly following up to pay the final settlement amount and has threatened to update in NSR (online emplyoyee database) and start legal action. I would like to know in this situation, on grounds of compassion how can i get a waiver from the employer and prevent from updating NSR. I have data to support my claims and medical circumstances. I am not in a position to repay. kindly assist.