Leather sofas can really dominate the room and can give an overall cold feeling. I would add some earthy elements, like a wood coffee table with glass or metal. Go to Restoration Hardware's website and look at their sofa room scenes. And I'm sorry I think the art is too harsh for the room. That's all your eye goes to in the room. too overpowering. I would look for something softer or maybe a cool mirror and I would add color to the room with pillows and some colorful lamps. I also think woven blinds would look great. They add warmth and give a finished look. The color of your window treatments should contrast your wall color a bit, not match it or else it starts to look generic and blah.. You have warm walls, warm floors and the woven blinds, like Hunter Douglas brand would pull it all together for you.

I think your inclination toward rustic and distressed pieces is the right way to go. Consider a movable coffee table - I see 2 recliners that may necessitate some table shifting?- an area rug large enough to incorporate all the seating, rather than just a hearth rug, and enclosed storage for your electronics. If you can post shots of the room, other Houzers may have some more ideas.

I've seen a lot of photos and I have come to realise that I really like the pastel/muted color pallete and have also come to know that they are good for small rooms. I really liked nickel grey and silver grey. Do both of these colors also belong to pastel color pallete? I am not able to find a separate section for pastel color pallete on asian paints' website. So it's difficult to find similar colors. Thanks for helping me.

Pooja's placement is what I was talking about, if you like the NiTi has placed it, shifting the wires is not as expensive an affair as you think it to be. you can pull them from the false ceiling. another thing you can do is use them as two separate pieces. have a C side table that goes under the sectional for a built in side table look for the right piece and use the left as a chaise. You could also shorten it. that will be cheaper but you'll need a skilled craftsman otherwise the structure can be compromised. since you're planning to reupholster, shortening it is also a viable option.