The 23-year-old Hagen Central man was selling drugs when he spotted the 28-year-old Tari man who owed him some money.
Eye witnesses told police that the Hagen man took out a bush knife but the Tari man ran off.
Police on patrol towards Saraga Street spotted the commotion and intervened to calm the situation.
Upon searching the man the police also uncovered 8kg of packed marijuana on him.
This means that the man will also be facing charges for drug possession as well as disturbing the peace and threatening with a dangerous weapon.
