The incident happened when members of the Congress, TMC, BSP and SP created a ruckus over their demand that the House mourn the killing of 25 armymen since surgical strikes and deaths of 82 persons in post-demonetisation hardships.
Yadav said it was unprecedented that there was no obituary reference for the seven army personnel including two senior officers killed in terrorist attack at Nagrota armybase near Jammu yesterday.
As he also raised death of "nearly 90 persons" in post-demonetisation hardships, Jaitley retorted that he should first discuss demonetisation within his party and find "if it is agreeable" with the ban on 500 and 1000 rupee notes or not.
His remark was apparent reference to JD(U) chief and Bihar Chief Minister Nitish Kumar supporting demonetisation.
"We are not against demonetisation. We are against the restrictions that have been placed (on withdrawals from own accounts)," Yadav shot back.
The JD(U) leader then went on to ask if Prime Minister Narendra Modi was with him or not.
"Is your Prime Minister with you? Is he listening to you," he asked.