Lawyer Irfan Tarar says the judge announced the decision after Saturday's court hearing during which police said it had dropped the charge against the boy.
He says police had registered the case against the toddler and his family members without investigating the matter and the judge had sought an explanation.
The case highlights the country's dysfunctional criminal justice system where even children are not immune from questionable legal decisions.
The toddler was brought to court last Friday as part of an investigation relating to an incident where residents in his neighborhood clashed with police.
