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 passive or active controlled lubricant collection receptacle is provided which maximize fluid retention in conditions wherein there is not a high demand of torque for the clutch system of the transfer case thereby minimizing fluid that is unnecessarily churned by engagement with the hub connected with the secondary shaft.