It appears the argument escalated and a fight broke out between the two groups about 8pm.
At some point during the incident, a 16-year-old youth was confronted by another male. Fearing for his safety, he ran from the male, however, was chased down and stabbed in the back.
The injured teen and his friend sought assistance at a nearby service station.
Emergency services attended and the teen was taken to Westmead Hospital and in a stable condition.
Police are now searching for a male who may be able to assist with inquiries.
He is described as being Pacific Islander/Maori appearance, about 16 to 18-years-old with a solid build.
Police arrested a 17-year-old youth nearby who was taken to Granville Police Station.
He was later released pending further inquiries.
Investigations are continuing and investigators are appealing for anyone who has information or phone footage of the incident to contact Cumberland Police Area Command or Crime Stoppers on 1800 333 000.
Owner on fire charge
A MAN has been charged following a fire at an Auburn industrial complex in earlier the year.
About 6.30pm on Monday, April 21, emergency services responded to reports of a fire in the unit of a warehouse on Adderley Street.
The fire completely destroyed the warehouse unit, causing $2.5 million worth of damage.
A strike force was established by Auburn Detectives to investigate the fire and following extensive investigations, uncovered alleged suspicious activity by the owner of the business occupying the unit in the period leading up to the fire.
Last Thursday morning, the 27-year-old owner was arrested at Auburn Police Station.
He was charged with dishonestly damaging property by fire.
Pregnant and robbed
A MAN has been charged following the alleged robbery of a pregnant woman in Berala last week.
About 10.40pm on Wednesday, August 7, a woman, who is five months pregnant, was entering a unit complex on Crawford Street when she was approached from behind by a man who pushed her down and grabbed hold of her handbag.
The woman’s bag slipped out of her hands and the man ran from the scene before getting onto a push bike and was seen riding down Nichol Lane.
Following inquiries, a 36-year-old man was charged.