The incident occurred when Banerjee, who was part of his party MPs' team which was raising slogans in the Well on the FDI issue, was returning to his seat after the House adjourned for the day shortly after noon.
He and Sharma had heated exchanges on some issue which was not audible in the din, but later Sharma was heard telling the Trinamool MP to "be civilised" and Banerjee shouting back in an abusive manner.
"Whether I understand the country or not, you ascertain that from your leader Mamata Banerjee who has worked with me as a colleague. She would know," Sharma told Banerjee.
Other MPs and some ministers intervened and asked both of them to be seated.
Later, Minister of State for Parliamentary Affairs Rajiv Shukla was seen trying to pacify Banerjee and asking him to calm down.
"I don't want to join issues with him. It is unfortunate. He was offensive and less than civilised," Sharma later told PTI, adding that he did not want to take the issue any further.
