Can her husband or my wife file any police case against us?
No, no police complaint can be made against you. But if a police complaint is made the police may try to be smart and intimidate you as they think that you do not know the law.
Can anyone i.e. court seperate us?? Even though we don't want to live with our slouse.
No no court order can be obtained to separate you.
Section 497 of IPC was nullified by the Supreme Court some years back. IPC has been replaced by a new law. I do not remember its name. Presumably there is no section under the new law under which you can be punished. The learned lawyers may know.
Generally we try to follow laws in other countries particulaly the United States. In the US these laws are State subjects and the law varies from State to State. The maximum punishment in the US for adultery is a $10/- fine.