This is a fabulous room. It oozes a bygone charm that you would lose by adding false ceilings and tube lights. Please don't! Go all out to preserve this magnificent floor and the beautiful furniture. That mirror is superb, as is the old painting. Keep the wall colour as is and change the upholstery after polishing and keeping the beautiful wooden furniture. The upholstery is mismatchedat present. But the different styled armchairs look very comfortable. Keep them. No modern furniture will give you such comfort. When you re upholster, refrain from choosing firm foam and such nonsense. It is far better to have good quality down or cotton, which moulds to the body shape. Invest in a high quality traditional patterned Persian or Kashmiri carpet for a restrained stroke of colour. Your upholstery should pick up colours from this carpet. So should the curtains. Please never even consider vinyl blinds, horizontal and vertical. If you tamper with this room and remodel it to be 'modern'- you will lose a treasure.

that is what i have added if you can see the pic above.. want some suggestions on partition that i can use between dining and sitting

@Rock Doc: Are you addressing this to me? I haven't actually bought these tiles yet - when I do, I will definitely be going for the handmade ones. They're a work of art and irreplaceable in my opinion. However, there are also screen-printed tiles available in the market in more or less the same patterns; the workmanship is of course different, but you get them cheaper, and they're also more easily available. You could give that a shot. I'd recommend Aakaar Flooring Solutions - they're here on Houzz and are able to provide both the above-mentioned types.

hand crafted wooden cocktail table and a revolving bar chair .. just made to excellence..