This tense is used in narration to talk about things that happened in the past.
Past Historical form is same as Simple Present form.
We sat in a circle and the old lady told us about her childhood. She heaved a sigh and started, “At this time of the day, all of us came here and looked at the stars in the sky. We played till we heard our parents call us home from across the paddy fields”.
The verbs in the clause in quotes are in Past Historical in Malayalam.