The name of the hillock where the shrine stands i s called Nilachala (blue mountain). This name is associated with legend,which is happily preserved to us in the Kalika Purana in the chapter on Daksa Yaina. According to this source, when King Daksa, the father of Parvati (Sati),instituted a great sacrifice, he sent invitation to all his daughters and the gods and sages,except his eldest daughter Parvati and Siva, his son-in-law, as he disliked them.
This dislike was due to the fact that in spite of his opposition Parvati married Siva, whose peculiar habits and quite irrelevant attitude were not favored by him. Parvati however, came to learn about the perfor- mance of the sacrifice through Narada. She further learnt from Narada that all her sisters with their husbands had gone there. She very much desired to see her parents as well as her sisters and also wanted to know from her fat-her what made him to Ďadopt such a negligent attitude towards her and her husband.
Therefore, with the permission of her husband, Parvati journeyed to her fatherís place uninvited. But to her utter dismay she found her father none happy at her arrival. This was naturally discouraging to Parvati, who was further mortified to find that no necessary arrangement was made for the reception of Siva although great care was taken to assign places of honour to all other gods. When she asked her father why Siva was so much neglected by him, Daksa, without making secret of his displeasure started abusing Siva.