it depends on what you're fixing the panelling to. If the wall surface is well constructed and no bits of plaster falling off, it might work. But I'd be tempted to use the adhesive, then a little bit of discreet drilling, plugging and screwing to ensure the whole lot doesn't decide to fall off in the night.
If the wall is wobbly, crumbly and generally rubbish you'll need to fix battens and fix the panelling to that.
If the wall is papered remove the paper! Or you will only be fixing to paper not wall!