diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CandidateResolver.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CandidateResolver.kt
index 4f58f8a7d30..7d55604850d 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CandidateResolver.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CandidateResolver.kt
@@ -112,7 +112,10 @@ class CandidateResolver(
 
     private fun CallCandidateResolutionContext<*>.processTypeArguments() = check {
         val jetTypeArguments = call.getTypeArguments()
-        if (!jetTypeArguments.isEmpty()) {
+        if (candidateCall.knownTypeParametersSubstitutor != null) {
+            candidateCall.setResultingSubstitutor(candidateCall.knownTypeParametersSubstitutor!!)
+        }
+        else if (!jetTypeArguments.isEmpty()) {
             // Explicit type arguments passed
 
             val typeArguments = ArrayList<KotlinType>()
@@ -140,9 +143,6 @@ class CandidateResolver(
 
             candidateCall.setResultingSubstitutor(substitutor)
         }
-        else if (candidateCall.getKnownTypeParametersSubstitutor() != null) {
-            candidateCall.setResultingSubstitutor(candidateCall.getKnownTypeParametersSubstitutor()!!)
-        }
     }
 
     private fun <D : CallableDescriptor, F : D> CallCandidateResolutionContext<D>.mapArguments()
diff --git a/compiler/testData/diagnostics/tests/Bounds.kt b/compiler/testData/diagnostics/tests/Bounds.kt
index f3a6e80bdb8..2efca46f280 100644
--- a/compiler/testData/diagnostics/tests/Bounds.kt
+++ b/compiler/testData/diagnostics/tests/Bounds.kt
@@ -20,7 +20,7 @@ package boundsWithSubstitutors
 
   class Pair<A, B>
 
-  abstract class C<T : B<<!UPPER_BOUND_VIOLATED!>Int<!>>, X :  (B<<!UPPER_BOUND_VIOLATED!>Char<!>>) -> Pair<B<<!UPPER_BOUND_VIOLATED!>Any<!>>, B<A>>>() : B<<!UPPER_BOUND_VIOLATED, UPPER_BOUND_VIOLATED!>Any<!>>() { // 2 errors
+  abstract class C<T : B<<!UPPER_BOUND_VIOLATED!>Int<!>>, X :  (B<<!UPPER_BOUND_VIOLATED!>Char<!>>) -> Pair<B<<!UPPER_BOUND_VIOLATED!>Any<!>>, B<A>>>() : B<<!UPPER_BOUND_VIOLATED!>Any<!>>() { // 2 errors
     val a = B<<!UPPER_BOUND_VIOLATED!>Char<!>>() // error
 
     abstract val x :  (B<<!UPPER_BOUND_VIOLATED!>Char<!>>) -> B<<!UPPER_BOUND_VIOLATED!>Any<!>>
diff --git a/compiler/testData/diagnostics/tests/generics/RecursiveUpperBoundCheck.kt b/compiler/testData/diagnostics/tests/generics/RecursiveUpperBoundCheck.kt
index 33a4ca82b6f..33add95e801 100644
--- a/compiler/testData/diagnostics/tests/generics/RecursiveUpperBoundCheck.kt
+++ b/compiler/testData/diagnostics/tests/generics/RecursiveUpperBoundCheck.kt
@@ -1,3 +1,3 @@
 open class C<T : C<T>>
 class TestOK : C<TestOK>()
-class TestFail : C<<!UPPER_BOUND_VIOLATED, UPPER_BOUND_VIOLATED!>C<<!UPPER_BOUND_VIOLATED!>TestFail<!>><!>>()
+class TestFail : C<<!UPPER_BOUND_VIOLATED!>C<<!UPPER_BOUND_VIOLATED!>TestFail<!>><!>>()
diff --git a/compiler/testData/diagnostics/tests/regressions/kt7585/base.kt b/compiler/testData/diagnostics/tests/regressions/kt7585/base.kt
index 29437c00907..ac1a659a8cc 100644
--- a/compiler/testData/diagnostics/tests/regressions/kt7585/base.kt
+++ b/compiler/testData/diagnostics/tests/regressions/kt7585/base.kt
@@ -7,7 +7,7 @@ abstract class Wrapper<T: A>(protected val t: T)
 class MyWrapper(a: A): Wrapper<A>(a)
 
 // This wrapper is not legal
-class TheirWrapper(e: E): Wrapper<<!UPPER_BOUND_VIOLATED, UPPER_BOUND_VIOLATED!>E<!>>(e)
+class TheirWrapper(e: E): Wrapper<<!UPPER_BOUND_VIOLATED!>E<!>>(e)
 
 data class Pair<out T>(val a: T, val b: T)
 
diff --git a/compiler/testData/diagnostics/tests/regressions/kt7585/java.kt b/compiler/testData/diagnostics/tests/regressions/kt7585/java.kt
index e81d97b1f80..8aae56822bb 100644
--- a/compiler/testData/diagnostics/tests/regressions/kt7585/java.kt
+++ b/compiler/testData/diagnostics/tests/regressions/kt7585/java.kt
@@ -17,7 +17,7 @@ class E
 class MyWrapper(a: A): Wrapper<A>(a)
 
 // This wrapper is not legal
-class TheirWrapper(e: E): Wrapper<<!UPPER_BOUND_VIOLATED, UPPER_BOUND_VIOLATED!>E<!>>(e)
+class TheirWrapper(e: E): Wrapper<<!UPPER_BOUND_VIOLATED!>E<!>>(e)
 
 data class Pair<out T>(val a: T, val b: T)