When Shiva was passing over this place on his way back to Kailash carrying Sati's body, her head fell at the spot where the modern temple of Sarkunda Devi or Surkhanda Devi stands and due to which the temple's got its name as sirkhanda which in the passage of time is now called sarkunda.
When Shiva was traveling back to Kailash with Sati's body in his arms, her head landed at the location where the modern temple of Sarkunda Devi or Surkhanda Devi is situated. This caused the temple to be named Sirkhanda, which has evolved into Sarkunda over time.