Is this Hatkeshwara form of Lord Shiva and any story related this form mentioned in Hinduism scriptures or in other Puranas?
Yes, it is mentioned in many puranas.
Like YDS mentions in a comment, the story is present in the Koti Rudra Samhita of Shiva Purana.
Firstly, the name Hatkeshwara is mentioned in the Skanda Purana, Kedarakhanda, Chapter 7, which describes the complete procedure about worshiping a Shiva Linga. From the list of Lingas:
[...], Sikhareshvara Linga on srisaila, Mallalanatha in Kanti, Simhanatha in Singala (Simhala), so also many Lingas such as Virupaksa Linga, Kotisankara, Tripurantaka, Bhimesa, Amaresvara, Bhogesvara and Hatakesvara in Patala. These and many other Lingas of this sort were installed in all the three worlds by Devas for helping the entire universe.
In the Kaumari Khanda, they describe Hatakeshvara in detail and about his presence in Patala:
In the seventh nether world, i.e. Patala, there is the Linga Sri Hatakesvara. it had been installed by Brahma, 0 son of Prtha. It is a
thousand Yojanas in height.
The mansion (or the shrine) of Hataka
Linga is ten thousand Yojanas in height. It is divinely studded with
all gems and jewels. It is embellished with many wonderful features.
- There the different groups of excellent and leading Serpents worship that Linga- Beneath it there is much water and beneath that
there are the hells.
- All sinners are cast into them. Listen to
them, 0 highly intelligent one. They are fifty-five crores in number.
There are twenty-one crores of kings (to look after them).
In the very same Khanda, there are many references to Hatakeshwara. The 48th chapter ends with a prayer to Hatakeshvara:
(Prayer) Hymn to Hatakesvara 22-25. Obeisance to you, 0 Lord Rudra, 0
Bhaskara (Refulgent one), to the (Lord) of unmeasured refulgence.
Salute to Bhava, to Rudra, to .Rasa (Juice, Essence), to you identical
with water, to garva in the form of the Earth. Obeisance to the Lord
perpetually full of scents;' to Isa. Repeated obeisance to you, Vayu
of good touch. Hail to the Lord of Pasus (individual souls), to Pavaka
(fire, the sanctifying one) of extreme splendour; to the terrible one;
to the Lord in the form of Vyoman (firmament). Obeisance to you,
solely of the form of sound. Bow to you, the great Lord, to Soma;
obeisance to you, the immortal deathless one; to Ugra (fierce one); to
the worshipping one; obeisance to you, the Karmayogin.
the hymn was uttered in the form of the divine names. A man who, with
purity, recites or listens to this prayer composed by Brahma unto
Hatakesvara Linga daily attains merger with Astamurti (i.e. Siva).
There is no doubt about it. He who remembers with purity the Linga of
Hatakegvara shall be granted all boons by Brahma by whom this was
installed. 0 Jaya, thus there are many holy Tirthas of this sort in
the meeting place of Matti and the ocean. They have been succinctly
described by me.
The Nagara Khanda of the Skanda Purana contains the story of Hatakeshvara in detail, including the places where it is present. Some of the Chapters are:
- Chapter 76 - Installation of Mandira, Kalapriya and Mulasthana): Suta describes the three Bhaskaras and how they rise at the holy place of Hatakeshvara
- Chapter 118 - Installation of Raivatakeshvara and Ksemamkari: Suta describes how Takshak who was reborn as Raivata in Saurashtra, and Kshemamkari, his wife were blessed with a boy at Hatakeshvara kshetra (and the deity is called Raivatakeshvara)
- Chapter 199 - Greatness of Eight Nagara Families: Suta selects 24 places out of the 35 million pilgrimage spots, out of which he selects three kshetras, which are Kurukshetra, Hatakeshvarakshetra and Prabhaskshetra.
(the Nagara Khanda has 269 chapters, and I'm sure that Hatakeshvara has appeared in many of them. I advise you to go through an abridged version of it).
There are mentions of Hatakeshvara in Linga Purana as well, but I'm not able to find them. I will update as soon as I find them.
Is there any temple of Lord Hatkeshwara in India ?
There are a few. As Saravabhouma has already mentioned in the other answer, the Hatkeshwar Temple at Vadnagar, Gujarat is the most famous of them all. It is this one which has been mentioned in the Nagara Khanda of Skanda Purana. Hatakeswaram Temple near Srisailam is another temple. Another famous Hatakeswar temple is present in Bubaneshwar, Orissa.
A smaller temple of Hatakeshvar is present in Pusad, Maharashtra. The mountain ranges where the Lenyadri Ashtavinayak is present is called Hatakeshvar mountains.