Surendra Mohan, J.

This appeal is filed challenging the judgment dated 29.7.2015 of the learned Single Judge in WPC 6332/2009.

The appellants are Abkari contractors. They along with two others who are no more, had been contractors for the conduct of arrack shops in group No.1, Vaikom Excise Range for the Abkari year 1993-94 (1.4.1993 to 31.3.1994). Due to nonpayment of the kist amount the licence was cancelled on 19.8.1993. Thereafter, the shops were conducted under- Departmental Management from 11.9.1993 to 31.3.1994. Meanwhile, on 23.12.1993 Rule 13 of the Abkari Shops (Departmental Management) Rules, 1972 (the 'Departmental Rules' for short), was amended to provide that the Departmental Management amount could be forfeited without any credit for the said amount being given to the Contractor while calculating the loss of the Government

2. Since the licence of the petitioners were cancelled, as per the rules applicable, they were liable to compensate the State for the loss caused due to their default and consequent cancellation of the licence. Therefore, demand notices were issued against them for the amounts claimed by the State as loss. According to the petitioners, the en