diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt
index b0c7e05dc82..7b1092eba06 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -853,7 +853,8 @@ class TypeResolver(
         if (userType.qualifier != null) { // we must resolve all type references in arguments of qualifier type
             for (typeArgument in userType.qualifier!!.typeArguments) {
                 typeArgument.typeReference?.let {
-                    forceResolveTypeContents(resolveType(scope, it, trace, true))
+                    // in qualified expression, type argument can have bounds only in incorrect code
+                    forceResolveTypeContents(resolveType(scope, it, trace, false))
                 }
             }
         }
diff --git a/compiler/testData/diagnostics/tests/inference/kt11963.kt b/compiler/testData/diagnostics/tests/inference/kt11963.kt
new file mode 100644
index 00000000000..38ce02d3843
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/kt11963.kt
@@ -0,0 +1 @@
+<!MUST_BE_INITIALIZED!>val <<!TYPE_PARAMETER_OF_PROPERTY_NOT_USED_IN_RECEIVER!>T : <!UNRESOLVED_REFERENCE!>KClass<!><T>.<!DEBUG_INFO_MISSING_UNRESOLVED!>something<!><!>> abc<!>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inference/kt11963.txt b/compiler/testData/diagnostics/tests/inference/kt11963.txt
new file mode 100644
index 00000000000..2c8d728bfb1
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/kt11963.txt
@@ -0,0 +1,3 @@
+package
+
+public val </*0*/ T> abc: [ERROR : No type, no body]
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 7fa8e99b59d..4941fe8935b 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -10216,6 +10216,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt11963.kt")
+            public void testKt11963() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inference/kt11963.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt12399.kt")
             public void testKt12399() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inference/kt12399.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 6d4271cfc32..d6abda4bd8c 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -10216,6 +10216,12 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 doTest(fileName);
             }
 
+            @TestMetadata("kt11963.kt")
+            public void testKt11963() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inference/kt11963.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt12399.kt")
             public void testKt12399() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inference/kt12399.kt");