The clash happened outside the MC Bhawan premises where a special meeting of the newly-elected councillors was called to elect the Mohali mayor.
The meeting to elect mayor was convened under the supervision of Divisional Commissioner. But no sooner voting begun councillors started raising slogans against each other.
Local Congress MLA Balbir Singh Sidhu said that some SAD leaders allegedly tried to grab the mike of the Divisional Commissioner following which he (the DC) left the venue.
When the news of the postponement reached outside the MC Bhawan, the supporters of SAD and Congress first exchanged barbs then started pelting stones on each other, police said.
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Two vehicles were damaged in stone pelting by supporters of the two parties that followed verbal exchanges between their leaders inside the voting hall, police said.
Police said they had to use mild cane charge to bring the situation under control.
The Congress councillors accused their SAD counterparts of breaking table and window panes in the hall.
Mohali SAD in-charge Balwant Singh Ramoowalia however said all allegations were false.
Ramoowalia also denied that his party supporters pelted Congress workers with stones.
Meanwhile, Congress and rebel SAD leader Kulwant Singh, who heads Azad Group having 10 councillors, claimed they were united and mayor will be elected from their alliance.