I made the following changes and got the right answer.

import java.io.*;
import java.lang.*;
import java.util.Scanner;
import java.util.Arrays; 
class A
{
    public static void main(String args[])throws IOException
    {
       
        Scanner input = new Scanner(System.in);
         int t = input.nextInt();
        int x;
        for(x=1;x<=t;x++){
         
         int n = input.nextInt();
         int k = input.nextInt();
           int a[]=new int[n];
           int i;
           for(i=0;i<n;i++)
           a[i] = input.nextInt();
           Arrays.sort(a);
           
           int max=0,index=0;
           for(int g=0;g<a[n-1];g++){
               if(index==n){break;}
              

            //changes made here 
             int h=1;
             while(h<=k){
               if(index==n){break;}
              if(g<a[index]){index++;max++;h++;}
              else{index++;}                        


             }
                
            }
           System.out.println("Case #"+x+": "+max);
        }
        
    }
}


Once again Thanku everyone for helping.

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