Legal action can govt. banks take on default education loan

Hi, I had borrowed education loan of Rs.2 Lac from Central bank of India in 2012 for pursiung MBA.I belongs to poor family and bank issued me loan with co applicant of my uncle.I completed MBA in 2014 without any campus recruitment and struggled alot for a job.After more than one year of struggled i got the job.After two months of getting job i have started the repayment of loan emi. In last 10 months ago i had met in an accident and got serious injury. It had cost to more than one lakh and which was unrefundable to me. I was unable to repay EMI due to which my account turns into NPA. I discussed with branch manager to give some extra time to settle down my job as i am the only earning person in my family.But they refused to listen and force me to pay overdue amount.I have started the repayment in small amount.Now i dont have any job in my hand and my overdue is nearby 40000/.The same i have discussed with branch manager but they are not listening and threatning to file legal action. Can bank issue any legal action against me or my family? Please help.