The argument escalated when the complainant confirmed he had let some car tyres down.
Grabham picked up an axe and threatened the complainant with it.
The two began fighting before Grabham ran back to his house and got two sharp knives from the kitchen, climbed a fence and confronted the other man.
Another fight ensued and during their struggle, the complainant was stabbed three times.
Grabham's lawyer Tony Balme told Judge Peter Rollo there was a third incident between his client and the neighbour, in which the latter at one stage had chased Grabham after he tried to run off.
Mr Balme said Grabham had accepted what he did was wrong and he hoped a restorative justice meeting could have taken place between him and victim so they could have made their respective apologies but that did not happen.
Grabham was genuinely remorseful and offered to pay $1000 to his victim, he said.
Judge Rollo told Grabham, a first-time offender before the courts: "This is exactly the reason why people should not arm themselves with weapons, as it can easily lead to serious injury, or death."
Judge Rollo said the complainant suffered extreme pain and ongoing effects but fortunately there was no damage to internal organs, and it was due to all these circumstances that he was willing to step back from a prison sentence.
"The real measure of a man is how you deal with this going forward, particularly how you redeem yourself with your family and the wider community," the judge told Grabham.
