Baiju, a woodcutter, in the region used to reverently tap the linga at the temple daily with his axe before going into the jungle for cutting the wood. He continued this practice for years. Once a group of priests who came to have a look at the temple saw, Baiju tapping the linga with his axe.
They felt this was as insult and cursed Baiju that for this blasphemous act he will be destroyed by the third eye of Shiva.
Suddenly a voice came out from the linga stating that Baiju is my favorite devotee and no power in the world will destroy Him. Without fail he regularly comes and taps me. His this action is more pious and earnest than the distracted rituals and prayers of yours.
The story spread far and wide and people started worshipping the Linga and it came to be known as Baijyanath.