tail -3 /etc/init/ssh.conf 
# if you used to set SSHD_OPTS in /etc/default/ssh, you can change the
# 'exec' line here instead
exec /usr/sbin/sshd

add -4 to the last line
exec /usr/sbin/sshd -4

and restart ssh

After this  X11 forwarding worked for me

-- 
ssh X11 forwarding does not work
https://bugs.launchpad.net/bugs/657302
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