Ran the same command directly from cmd window and it works - it launch the TE and run the Project Suite .
Did you create this batch file in Word or Google docs? If so, I would paste it into Notepad or some other plain text editor and resave it. It may have control characters in it that are causing a problem.
Finally I figured out.
Here we can mention the following commands in bat file when running multiple projects in sequence
"C:\Program Files (x86)\SmartBear\TestExecute 14\Bin\TestExecute.exe" "Path to the Project1.mds" /run /exit
"C:\Program Files (x86)\SmartBear\TestExecute 14\Bin\TestExecute.exe" "path to Project2.mds" /run /exit