SCB — CIBIL report

Hello
I have recently applied for a home loan in SCB. The bank has not approved my loan saying that my father has a bad repayment history according to the CIBIL report.
I have the following questions regarding the same:
1. When my father is not the applicant or the co-applicant for the loan, why should his repayment history come in the way of my loan approval?
2. Actually there is no reason for putting my father's name in the defaulters list. In 2005, he had cleared off the overdue payments with a waiver from the bank. i.e the final settlement was done with a waiver from the bank and the credit card was closed. Now, the CIBIL report still says that he has some outstanding payment to be made. The bank actually wants the waivered amount to be cleared along with some interest. What kind of a system is this? Firstly the CIBIL data should have been updated once the settlement was done. Secondly the bank should not ask for the repayment as they themselves had waivered the amount some 3 yrs back.

Please advice what could be done.

Thanks
Shruthi