Hi Faisal,
I assume that your email / smtp configuration works for other types of notifications.
We are currently on SP14 and it works without a problems, so assume that problem is somewhere within config.
Please check in SE61 that document object you have assigned to template ID (GRAC_AR_FORWARD) - in step 4 of MSMP workflow config, is maintained in correct language and activated. If this is not the case, please attach screenshot with your stage definition, just in case problem is there.
Regards, Andrzej
