Love the armless sofa-bench! Try using it in the center as a "cross-linking" piece between the sofa and chairs. That way people can sit on both sides of it, conversing with the sofa people and the chair people. Put the chairs where it is and use the side table from the left of the pic, or the one with flowers, between them. You'll need one huge rug to anchor the space or two smaller, and very similar ones, to put on either side of the blue sofa-bench. The other two side tables are too tall and too short for your seating pieces, so ditch them. Use your coffee table between the sofa and armless sofa (18" away from each of them.) Here's a chart for judging table and lamp heights as you'll need to work on that for balance. Please try this arrangement, and post by commenting and using the Attach Images button to add pix of the update. We'll tweak it on out from there.

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

the back wall panels look like ikea besta doors. the hanging cabinet could also be besta boxes, but with customized doors. the console in front of it, you could get a similar look by using a malm console table and cutting it to height. from there you'd want to use a couple of besta cabinets to create the closed off storage. the low bench could be made with plywood and then stained or painted to match the finish of the malm/besta combo you choose. besta cabinets :: http://www.ikea.com/us/en/catalog/categories/departments/living_room/11794/ malm console table :: http://www.ikea.com/us/en/catalog/products/80196480/

Thank you nagadeepti, but there is an issue, my father has already finished with the basic foundation,sump, and pillars when I tried to tell him about the option he said that its not possible to change the plan , Please let me know if there are any other option , i have included the ground floor plan as well ,I thought of swapping the bedroom to kitchen in first floor , let me know if its possible according to vastu since its north facing site with roads on both north and south . we have made slight changes instead of full utility in ground floor its only till kitchen , bedroom is extended to make 9*10, and kink for fridge is removed . balcony in second floor is removed . Kindly help if there are any other suggetion to make look house spacious. stairs to the terrace from outside has to be there. I know iam asking for more in a small space.but please help. finally this is the elavation we have decided on with a little bit of modification like extended balconies. Thank you all but my effort is just to make everything good for a little house for my 1.3 yr old daughter. Anam