The court also admitted a petition filed by Vodafone Essar Ltd and Nirvana Films, which made the commercial.
The AWB sent the notice to Nirvana Films last week and said making the dog run, gallop and chase a school bus for a long time on a public road in the commercial amounted to cruelty.
The board wanted Vodafone to cut out the part of the advertisement showing the pug.
Vodafone and Nirvana said the advertisement was shot in South Africa and the company had sought pre-shoot and post-shoot permissions from a South African veterinarian.
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Also, under section 24 of the Protection from Cruelty to Animals Act, only a magistrate can decide if the animal has suffered any cruelty due to such a performance, they said.