According to a Hindu legend, when Draupadi and Pandavas were wandering in the Himalayas during their period of exile, a beautiful lotus flower slipped into the hands of Draupadi. Bewitched by its beauty Draupadi asked Bhima to bring her more lotuses. Bhima who always wanted to see his wife happy went in search of the flower. He went hither and thither but couldn’t find the flower that had caught Draupadi’s attention. He then decided to take the trail where an old monkey was lying with his tail obstructing the path. When Bhima came near him, he asked him to move his tail, but the monkey said, he was too old and tired to give him the way, so he can lift his tail and place it on the other side if he wants to move forward.
Bhima made several attempts, but they all went in vain as he couldn’t lift his tail. On failing miserably, Bhima was left in awe of the strength of the monkey's tail and realized that it was not an ordinary monkey. Out of disgust, Bhima then requested the monkey to reveal his true self. After noticing that Bhima’s arrogance had succumbed, the monkey said, “I am Hanuman, son of the Wind, your elder brother”. Bhima then realized his mistake and sought forgiveness from Hanuman. Lord Hanuman accepted his apology, ushered blessings on his brother and told him the way to Kubera’s garden, where he could find the flower. Hence, the place was named Hanumanchatti in honor of the Lord Hanuman.