Legal consequences of not paying debts due to heavy loss

My dad, age 70 years, has a business of heavy fabrication, small scale unit. He had done a some projects (project cost - Rs. 30-50 lakh) in past 6-8 years where the client did not pay him his money (more than half). He suffered huge losses & had taken some loan from bank & has sales tax pending for these works. Though he had repaid some of his debts, but with his age not on his side he is unable to stretch it further. He has a debt of ~Rs 20 lakh pending towards bank & ~Rs 7-8 lakh pending towards sales tax. He has nothing left to repay his debt (no property) and cannot work further to reduce his loans. Is there a way in which his bank loan and sale tax due can be waived? He is ready to transfer his assets (ie machinery hardly 5 lakh) to the bank and is also ready to give declaration to the sales tax department & bank to recover their debt from the client who did not pay my father money. Will this help. What are the consequences if these debts are not paid. Pls suggest way forward