This is a structural evil that you will have to live with. But there are ways to turn it to your advantage. You could add a false ceiling between the beam and the far wall (about 6 " or so above the height of the soffit (bottom height) of the beam. As an extension of the false ceiling, you can also add a matching fake beam on the far wall side. Then recess lights into the false ceiling. In this way, you can turn this portion of the ceiling into a feature. With this feature, you could also turn attention away from the upturned 'pit' portion between the beam and the far wall. A fake beam at the far end will not interfere with circulation space, since you could place an entertainment unit there As an alternative to the false ceiling, you could create shallower beams in wood in that portion, parallel to the existing beam

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.

Thank you Marie. I'm herewith attaching couple of pics that were taken when the house was newly constructed. I wish I could take latest ones but it is a total mess now. But you'll get a fairly better idea with an empty house. One picture, taken in long-shot, shows the lateral part of the kitchen hidden behind the shelf and Arch (I brought down this Arch now). The second one shows the kitchen door showing only part of the kitchen interior. I've annotated the pictures wherever necessary. Hope they're not distracting. As you can clearly see, this is an old-styled construction even though this house was constructed barely 6 years ago! In an attempt to make the home look contemporary, my current project involves either 1 . Bringing down the concrete shelves completely and replace them with wooden cabinets/wardrobes. I've already brought down few concrete shelves in other rooms. OR 2. Alternatively, overlaying few of existing shelves with wooden doors to cover them up. Either way, the appearance is more or less the same once the furnishing is completed. At this juncture, this decision of 'Open Versus Closed kitchen' is holding me back from proceeding to the next phase of remodeling - Dropped Ceilings.

The living room window itself does not appear to be designed to let much light through. Please show a photo of that window, also of what lies outside the window. In the meantime, I suggest that you replace the builder-installed window with one of your own choosing. Use toughened glass rather than this heavy grill. Minimise the frame, if possible, particularly if there will not be much air coming through. If there is the potential of air but not much view, then have a sliding or bifold window that maximises the opening. On the blank wall outside, if that's your view, put up a green wall, creeper, something to improve the outlook. For nighttime viewing, add mild uplights in a natural white shade, focused on the greenery. Or else, you may be able to put up a reflective surface on the facing wall, to bounce in more of whatever light there is. Such as a coloured glass mural if not a plain mirror. Once you have maximised your window, move on to the wall to the right of your living room photo. That is, the wall that your living room shares with the west bedroom. Use a very large mirror on that wall to expand your living room visually and to bounce more light around. To cut down on expense/effort you can make it out of several standard-size sheets rather than one giant sheet. However, if that wall is to be covered with storage, make sure the front surface of the cabinetry is fairly light-coloured and reflective. Last, if not yet satisfied, consult a lighting expert for this room. That would be useful. These are fairly expensive solutions, all in all, but they should help.