I got the problem resolved by contacting Mathworks support. They have online request form, so I didn't call anybody.
The thing was I've set Java Heap Memory to 4GB while using x64 Matlab, such size exceeded maximum allowed JHM size for x32 Matlab and happened no triggering any warning message box. x32 matlab actually spits out an error message, if JHM size is representable (for 32-bit platform) and reset to default (128MB).
Solution is to set to some size representable for 32-bit platform.
Thanks everyone for helping out.