If its Avid, and she has the chip # they can tell her who that puppy belongs to possibly. The breeder had the chip placed in Lady and I registered her on line with Avid.
I was reading on Avid and they said to call them if there is a question about a code. Its worth a try possibly.
Poor little sheltie, but I am sure this little one is in good hands for now. That was great that your friend did a rescue and is giving some comfort for awhile.