The man, Jean-Louis B, was fined under Article 215 of France's civil code which states that married couples must agree to a "shared communal life", the 'Daily Express' reported.
The judge in the south of France's highest court in Aix-en-Provence ruled that this law clearly implies "sexual relations must form part of a marriage".
"A sexual relationship between husband and wife is the expression of affection they have for each other, and in this case it was absent. By getting married, couples agree to share their life and this clearly implies they will have sex with each other," the judge said.
In fact, the ruling came after the wife filed for divorce two years ago, blaming the break-up on her ex-husband's lack of activity in the bedroom. A judge in Nice then granted the divorce, holding the man solely responsible for the split.
But his 47-year-old former wife then took him back to a higher court demanding the cash in compensation for "lack of sex over 21 years of marriage". The man had blamed "tiredness and health problems", the Daily-Express said.