The army on Wednesday ordered a Court of Inquiry into an incident in which a Major allegedly set a school bus on fire on Tuesday at Mhow in Madhya Pradesh in retaliation for non-payment of dues to his teacher wife.

"The attention of army HQ has been drawn to a news item appearing in a section of the media on a bus being set on fire allegedly by a Major at Mhow. A Court of Inquiry has been ordered to investigate into the incident," an army spokesman said.

All the children had escaped unhurt but the bus driver had received 35-40 per cent burn injuries in the incident that occurred in the Mhow cantonment area near Indore.

According to Indore Superintendent of Police Madhukumar Babu, Major Mithilesh Chandra Jha set the bus of the Auckland Academy on fire after sprinkling petrol when it had gone to Mhow to pick up students.

Jha, serving in the Military College of Telecommunication Engineering (MCTE), was angry over non-payment of dues to his wife Ela, who had worked in the school, police alleged.

The police have registered a case against Jha.

More reports from Madhya Pradesh