Stack trace:
Oct 24, 2014 8:12:04 AM org.springframework.context.support.ClassPathXmlApplicationContext prepareRefresh
INFO: Refreshing org.
I removed SPRING-LIBRARY completely and then added all the required jars one by one plus cglib-nodep-2.2.jar.
There was also a spelling mistake in my code
public class RescueDamselQuest implements Quest {
Name of class.
But I am sure this spelling mistake was not the reason for the exception I was getting. After adding the jars from scratch I got this error that said the bean is not found as mentioned in the knights-aop.xml sth.. sth... which is when I figured that I have this typo.
This is how my jars are added now:

I hope someone might get help from this answer.
###########EDIT###########
asm-all & cglib-nodep are not required. Also, some jar from spring download was causing problems, as I tried adding all the jars I got in spring download and it started showing the old exception again. So it is better to add jar as and when required.