Olive Rack, owner of Tresco House Day Nursery in Kettering, Northamptonshire (pictured), attended a preliminary hearing at Kettering Magistrates Court on 20 December. A trial is to take place on 15 June.
The incident took place at the nursery on 18 July 2005, and was reported by two Northamptonshire County Council officials who were visiting the nursery at the time to advise on the curriculum.
Mrs Rack said, 'I was talking to the council workers when I spotted a two-year-old girl hitting a 12-month-old baby on the head with a large toy brick. I called the girl's name but she did not respond and hit the baby again. I walked towards the toddler and, when she saw me, she dropped the brick and started to cry.
'I took her by the hand and walked her to a chair. I told her to think about what she'd done. While I went back to check on the baby, one of the council officials started to cuddle the toddler and was smiling at her. The woman was sending her completely the wrong message and I was disgusted.'
Mrs Rack claims that the situation occurred because council officials had moved the baby into the toddler room without permission from nursery staff.
A spokeswoman for Northamptonshire County Council said that the council was unable to comment.
However, Mrs Rack said there was 'nothing unusual' in the way she had dealt with the toddler and described the incident as an 'everyday occurrence'.
The council officials did not challenge Mrs Rack at the time and it was a month before Ofsted notified her that a complaint had been made.
The toddler's parents are reported to be 'appalled' with the charges made against Mrs Rack and to believe the nursery owner handled the situation correctly. Their child still attends Tresco House.
Mrs Rack said, 'The definition of assault must be tightened up. We cannot rely on a person's interpretation of a situation and there must be proof of an intention to harm. Had I not intervened to stop the toddler hitting the baby, no doubt the council workers would have brought a similar case against me for neglect.'
Purnima Tanuku, chief executive of the National Day Nurseries Association, commented, 'Responses in the case of unacceptable behaviour must take account of the age and stage of development of the child, be relevant to the action and be fair. It may be necessary to use restraining action in an emergency to prevent personal injury.'