Modi and Sharif had a brief meeting during which they warmly held hands before sitting down for a chat amidst frosty ties between the two neighbours.
Downplaying the chance encounter, External Affairs Ministry Spokesperson Vikas Swarup said, "this was a brief exchange of courtesies in the Leaders Lounge. Prime Minister meets many Heads of State/Government."
After his meeting with Modi, Sharif told Pakistani media that the talks were held in a "good way, in a good environment".
"Pakistan desires better bilateral relations with India," he said.
"We want peace without any compromise on the dignity and honour of Pakistan," Geo TV quoted Sharif as saying.
He also favoured resumption of talks with India.
"If both the sides are on agreeing terms, then its not possible that the talks and discussions are not taken ahead," Sharif added.
Earlier, the Spokesperson had tweeted, "PM @narendramodi meets PM Nawaz Sharif at COP 21 in Paris," along with a picture of the two leaders shaking hands.
Sources sought to differentiate the bilateral meeting Modi had with Japanese Prime Minister Shinzo Abe from the brief chat the Prime Minister had with Sharif.
"Whether Kuala Lumpur or Paris, Tokyo or New York always time for good friend PM @AbeShinzo," Swarup tweeted after a meeting between Modi and Abe.
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