The BT pundit went further and branded the standard of refereeing in Scotland as "rotten".
Sutton was speaking after Danny Johnson had netted an excellent late equaliser for the Steelmen as Celtic passed up the chance to go to the top of the Ladbrokes Premiership table.
Brendan Rodgers' men took the lead through Ryan Christie before seeing a Filip Benkovic goal controversially ruled out at a corner by referee Kevin Clancy. Leigh Griffiths would also miss a first-half penalty.
While the Northern Irishman felt the goal should have stood, he refused to be critical of Clancy.
Sutton said: "I don't agree with Brendan's assessment of the referee. Come on! That was one of the worst refereeing performances."
Motherwell coach and BT pundit Stephen Craigan backed Clancy's decision.
"It can go either way," he said. "He puts his hand on Tom Aldred and the minute he touches him the referee blows, the referee doesn't look to see where the ball goes.
"He blows because he feels there is a hand on Tom Aldred."
It was met by an incredulous reaction from Sutton who blasted the standard of refereeing.
"I'm embarrassed for you," he said. "It was an appalling decision.
"Fair play to Motherwell they stayed in the game. Brendan came out and said no excuses, Celtic missed a penalty. Having said that (Allan) Campbell should have been sent off as well. Another poor decision. He (Clancy) had a nightmare.
"The standard of refereeing in this country, for too long, has been rotten. Tonight Kevin Clancy was hopeless."