Submission of two papers in one conference? I wanted to know whether it is allowed and also plausible to submit two papers at the same conference? Does the acceptance or rejection of one affect the acceptance or rejection of the other paper?
There is nothing wrong or unusual in submitting two papers on a single conference. For specific detail you should refer to the conference author guide. In my experience, there exists an upper bound of papers (about 3-4), but I have never encountered a conference where only a single paper was permitted.

The acceptance or rejection is individual, every paper is peer-reviewed on its own account.

You should keep in mind that the conference will charge every paper separately. You should also watch the presentation schedule for any conflicts (though, they are very unlikely)