As per case facts, petitioners, who had retired from service, were denied the benefit of an annual increment which had accrued on 1st of July of the year, having retired ... on 30th June. They appealed to the High Court, relying on Supreme Court judgments, arguing that the increment was earned for a year of good conduct service. The question arose whether employees retiring one day prior to their annual increment date are entitled to the increment earned for the preceding year of service. Finally, the High Court, relying on the Supreme Court's clear pronouncements, held that an annual increment is earned for satisfactory service rendered during the preceding year and cannot be denied solely because an employee retires the day before it formally accrues. The State Government is directed to pass specific orders within two months, adjusting and releasing retiral benefits, also considering policy decisions for those with more than six months but less than one year of service in their last year.