I think the instructor was right. Immediately after such an incident the chances are that one or both of you would not be in the right frame of mind for instruction and learning. Much better to let you both calm down and start fresh another day.
That's what I thought - anyone who's feeling even a bit wound up shouldn't go flying.
Instructors will know that.
Students should learn it.
There are those who respond to pretty well every thread here with "find a different instructor". Sometimes this is not the right answer.