Baddeley is in conflict with the 27-year-old professional over her refusal to comply with the training regime set up for England's elite squad.
Muggeridge, Britain's top-ranked singles player in the world, ended a meeting to sort out the situation by tipping a soft drink over Baddeley's head.
Support for Baddeley's stance came from Geoffrey Snowdon, the association's chief executive. "It is not our wish to be vindictive," he said. "However it is important that players honour their agreements and do everything they can to demonstrate their commitment to English badminton.
"Until such time as Muggeridge can clearly demonstrate her commitment and fitness, she will not be included in membership of the elite squad.
"This means she will not be able to participate in training with the squad, will not be funded to any tournaments and she will not be considered for selection for England."Reuse content