'service ntpd status' returns "ntpd dead but subsys locked" on RHEL 5

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Issue

'service ntpd status' returns "ntpd dead but subsys locked"
'service ntpd stop' fails
ntpd can be started successfully and is working without any issue.

Environment

Red Hat Enterprise Linux 5 (RHEL 5)
ntpd running chroot with a custom config

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