So finally the issue arised on trying to reimport using gradle tool bar -> refresh button:
"Unsupported Modules Detected: Compilation is not supported for following modules: libraryB. Unfortunately you can't have non-Gradle Java modules and Android-Gradle modules in one project." This is very annoying issue. -- You received this message because you are subscribed to the Google Groups "adt-dev" group. To unsubscribe from this group and stop receiving emails from it, send an email to adt-dev+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.