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He can be jailed for up to one year or fined up to Rs. 10,000 or given both punishments. (Any fine charged on the husband may be given to the wife as compensation if the court so direct).
If the husband gives a written assurance to the court that he will not demand dowry or that he will allow conjugal rights to his wife, the court may drop the proceedings against him.
But if he proves false to his promise, the wife can make a fresh application to the court and the court will take up the case from the stage at which it was dropped. (But she has to do it within three years of suspension of proceedings).