Katni is conjugation of culture from three different cultural states viz. Mahakausal, Bundelkhand, and Baghelkhand. There are three different stories behind Katni is named Mudwara.
Katni junction is having half circular Mode (turn) from wagon yard. So people call it "Mudwara"
Another story is that there was a village call Modwar that has been given as a reward of bravery for cutting Mud (heads).
A similar story is about the British government used to cut heads of Baggies and plunderer and hang them in squares to afraid people of doing crimes.