Stamping Paper

Can the agreement signed on plain paper becomes a valid document by affixing special adhesive stamps?

Normally, an agreement is made on non-judicial stamp paper of rupees 10. Can the agreement signed on plain paper
becomes a valid document by affixing special adhesive stamps?
It may be clarified whether i should affix special adhesive stamps of Rs5/- or Rs10/-
Agreement b/w the two parties. One party lends money to second party for carrying out some works.

Re. Rs.10/- stamp duty: Duty varies from state to state. Check the applicable rate of your state.
Adhesive stamps: Not permitted under the Indian Stamp Act, to be affixed and cancelled by the maker. If such a stamp paper is not printed in that state, then cancellation of adhesive stamps will be done by a sub-registrar.
Plain paper agreemen is valid. But the unstamped agreement will not be admitted in evidence by a court of law, in a litigation, for enforcement of the primary rights and liabiliies arising out of the agreement. In case of dispute, if a litigation is to be commenced, then the holder of the agreement shall present it to the sub-registrar, pay the shortfall of stamp duty alongwith a penalty ten times of the shortfall, get the agreement endorsed to that effect and then use the document as a duly stamped one.
Nomally for 'lending' a promissory note is prepared which can be executed by signing across the revenue stamp of requisite value. But if the terms and conditions provide for deferment of the period of repayment, performance obligations, penalties etc., then an agreement is o be drawn on a duly stamped paper.

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