Seven pupils have admitted being present during a hate crime incident at a school in which a black pupil was believed to have been tied up, put through a “mock slave auction” and subjected to racist abuse.

Two of the teenagers admitted being involved in the incident and underwent a “community resolution process”, a form of restorative justice involving the victim.

If one of the two had not admitted involvement and taken responsibility, he would have faced prosecution, police have said.

The incident, which has shocked Bath, took place at a well-regarded school, which has not been named, in the city in January. Avon and Somerset police treated the incident as a possible hate crime.

On Tuesday the force said it had been working closely with the victim and his family, the Crown Prosecution Service and the Bristol-based charity Stand Against Racism & Inequality (Sari).

A police spokesperson said: “Every aspect of the incident has been taken into account, including the wishes of the victim’s family, and as a result two boys will be subject to a community resolution process for their part in the offence.

“Community resolutions are a powerful tool focusing on reparation and are considered to be the most appropriate outcome in this case. Community resolutions are always rigorously monitored to ensure they are effective and the involvement of Sari will be a key part of this process.

“We take hate crime extremely seriously and recognise the devastating impact it can have on victims and their lives. There’s no room for this type of crime in Avon and Somerset and we’ll continue to work with our partner agencies and communities to stamp out offences motivated by prejudice or hate.”

The decision means that the two teenagers will not have a criminal record but the details of the resolution will be kept on file. All the youths admitted being present during the incident but the extent of their roles varied.

Police refused to give details of the alleged incident but it is believed that the boy was tied to a lamppost and verbally abused during a mock slave auction.

• The headline on this article was amended on 30 August 2018. While seven people were present during the incident, only two admitted being involved.