The "120 limit" sounds like a 70kg instructor and you at 120 totaling the W&B limit of 190. How much does Your instructor weigh? In reality they probably only just realized or someone "dobbed" to CASA.
For your future flying aspirations and so as to not waste your investment in flying thus far you should consider losing some mass. You may not find your medical as easy next time, you just don't know. At that weight you will struggle to legally fit in many an aircraft and you'll be limiting your enjoyment and thus the enjoyment of your passengers.