Legal action against school withholding transfer certificate

My business has gone bust. My children were studying in a very expensive school. I was not able to pay fee from last couple of months. I let the school know of my position and asked for time. But since then my financial position has worsened. Last week I received a call from school to collect my children from school and not to send them back till the fee is paid. I am in no position to pay the fee. My financial situation is so worse that no bank will issue the personal loan. I have exhausted all family help too. But my children have to go to school - I have identified some very low fee school in my area . My relatives have promised that they will help in admission and initial fee payment in new school as it is very very less. But the old school is refusing to issue the TC till previous fee is cleared - which I am in no position as it runs in Lakhs. I have no means of raising funds . What can I do?