diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt
index 188bade8b44..5a1623eb7ab 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DeclarationsChecker.kt
@@ -237,7 +237,7 @@ class DeclarationsChecker(
     private fun checkTypeAliasExpansion(declaration: KtTypeAlias, typeAliasDescriptor: TypeAliasDescriptor) {
         val typeAliasExpansion = TypeAliasExpansion.createWithFormalArguments(typeAliasDescriptor)
         val reportStrategy = TypeAliasDeclarationCheckingReportStrategy(trace, typeAliasDescriptor, declaration)
-        TypeAliasExpander(reportStrategy).expandWithoutAbbreviation(typeAliasExpansion, Annotations.EMPTY)
+        TypeAliasExpander(reportStrategy, true).expandWithoutAbbreviation(typeAliasExpansion, Annotations.EMPTY)
     }
 
     private fun checkConstructorDeclaration(constructorDescriptor: ClassConstructorDescriptor, declaration: KtConstructor<*>) {
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpander.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpander.kt
index 8a932bb1297..a8723e24171 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpander.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpander.kt
@@ -26,8 +26,10 @@ import org.jetbrains.kotlin.types.typeUtil.containsTypeAliasParameters
 import org.jetbrains.kotlin.types.typeUtil.requiresTypeAliasExpansion
 
 class TypeAliasExpander(
-        private val reportStrategy: TypeAliasExpansionReportStrategy
+        private val reportStrategy: TypeAliasExpansionReportStrategy,
+        private val shouldCheckBounds: Boolean
 ) {
+
     fun expand(typeAliasExpansion: TypeAliasExpansion, annotations: Annotations) =
             expandRecursively(typeAliasExpansion, annotations,
                               isNullable = false, recursionDepth = 0, withAbbreviatedType = true)
@@ -228,7 +230,9 @@ class TypeAliasExpander(
             if (!substitutedArgument.isStarProjection && !substitutedArgument.type.containsTypeAliasParameters()) {
                 val unsubstitutedArgument = unsubstitutedType.arguments[i]
                 val typeParameter = unsubstitutedType.constructor.parameters[i]
-                DescriptorResolver.checkBoundsInTypeAlias(reportStrategy, unsubstitutedArgument.type, substitutedArgument.type, typeParameter, typeSubstitutor)
+                if (shouldCheckBounds) {
+                    DescriptorResolver.checkBoundsInTypeAlias(reportStrategy, unsubstitutedArgument.type, substitutedArgument.type, typeParameter, typeSubstitutor)
+                }
             }
         }
     }
@@ -242,6 +246,6 @@ class TypeAliasExpander(
             }
         }
 
-        val NON_REPORTING = TypeAliasExpander(TypeAliasExpansionReportStrategy.DO_NOTHING)
+        val NON_REPORTING = TypeAliasExpander(TypeAliasExpansionReportStrategy.DO_NOTHING, false)
     }
 }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt
index 11be0da109f..a0eea798d74 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeResolver.kt
@@ -544,7 +544,7 @@ class TypeResolver(
         }
         else {
             val typeAliasExpansion = TypeAliasExpansion.create(null, descriptor, arguments)
-            val expandedType = TypeAliasExpander(reportStrategy).expand(typeAliasExpansion, annotations)
+            val expandedType = TypeAliasExpander(reportStrategy, c.checkBounds).expand(typeAliasExpansion, annotations)
             type(expandedType)
         }
     }
diff --git a/compiler/testData/diagnostics/tests/typealias/kt19601.kt b/compiler/testData/diagnostics/tests/typealias/kt19601.kt
new file mode 100644
index 00000000000..3347ed4e3db
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/kt19601.kt
@@ -0,0 +1,11 @@
+interface Order<T>
+
+typealias Ord<T> = Order<T>
+
+class Test1<T1 : Ord<T1>>
+
+interface Num<T : Number>
+
+typealias N<T> = Num<T>
+
+class Test2<T : N<<!UPPER_BOUND_VIOLATED!>String<!>>>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/typealias/kt19601.txt b/compiler/testData/diagnostics/tests/typealias/kt19601.txt
new file mode 100644
index 00000000000..46f3e11cfdd
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/kt19601.txt
@@ -0,0 +1,29 @@
+package
+
+public interface Num</*0*/ T : kotlin.Number> {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface Order</*0*/ T> {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class Test1</*0*/ T1 : Ord<T1> /* = Order<T1> */> {
+    public constructor Test1</*0*/ T1 : Ord<T1> /* = Order<T1> */>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class Test2</*0*/ T : N<kotlin.String> /* = Num<kotlin.String> */> {
+    public constructor Test2</*0*/ T : N<kotlin.String> /* = Num<kotlin.String> */>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+public typealias N</*0*/ T>  = Num<T>
+public typealias Ord</*0*/ T>  = Order<T>
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 22d40f51c8f..17497caf643 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -22849,6 +22849,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt19601.kt")
+            public void testKt19601() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/kt19601.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("localTypeAlias.kt")
             public void testLocalTypeAlias() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/localTypeAlias.kt");