Notary attached- legal action

The notary can attest the affidavit or agreement produced before him even if it is on white paper.

It depends upon the type of settlement as to whether it would be on white paper or or a stamp paper, which differs from a State to another State.

What sort of settlement vis-a-vis legal action do you propose for the document, you did not disclose for consideration and forming an opinion. ??

The job of Notary is to to attest the document on oath and stamp paper is just payment of duty for the document and has nothing to do with notary. Even if the stamp duty is to be paid he can attach the non judicial to that.