A transfer case is provided with a primary shaft which is selectively engagable with a secondary shaft via a clutch mechanism. The clutch mechanism is inclusive of a friction pack. A hub of the clutch mechanism is connected on the primary shaft and the clutch housing is torsionally fixed with a primary sprocket rotatively mounted on the primary shaft. A reservoir system is provided for delivering splashed oil axially along the primary shaft overlapping the friction pack. The reservoir system has a collective fluid receptacle that is connected via a stationary passage with a lubrication passage radially inward of the friction pack of the hub.