I also had this issue.  Rather than just not start ntpd in 
/etc/network/if-up.d/ntpdate
(you'd be better off just removing the script, no?),
I made it so that ntpd is restarted only if it was running to begin with:

I now have this at the bottom of my script (replacing the few lines
where ntpd was stopped, ntpdate run and then ntpd restarted):

# Do not start ntpd if it wasn't already running
RESTARTNTP=0

if [ -f /var/run/ntpd.pid ]; then
        RESTARTNTP=1
        if [ -x /bin/pidof ]; then
                pidof /usr/sbin/ntpd | grep -f /var/run/ntpd.pid -q  ||
                        RESTARTNTP=0
        fi
fi

if [ "$RESTARTNTP" = 1 ]; then
        invoke-rc.d --quiet ntp stop || true
fi

/usr/sbin/ntpdate-debian -s $OPTS 2>/dev/null

if [ "$RESTARTNTP" = 1 ]; then
        invoke-rc.d --quiet ntp start || true
fi

-- 
ntpd starts but does not contact peers
https://bugs.launchpad.net/bugs/224665
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