N-[3-chloro-2-(Substituted)-4-oxoazetidin-1-yl] - (Substituted) benzamides (4a-x) have been synthesized from different aromatic esters (1a-x) with hydrazine hydrate yielded benzohydrazides (2a-x) followed by condensation with aromatic aldehydes gave Schiff bases (3a-x). These Schiff bases with dimethyl formamide in presence of triethyl amine and chloroacetyl chloride by microwave irradiation produced azetidinones (4a-x). The synthesized compounds (4a-x) were screened for their antibacterial activity against four microorganisms: Staphylococcus aureus (Gram positive), Bacillus subtilis (Gram positive), Pseudomonas aeruginosa (Gram negative) and Escherichia coli (Gram negative). The antifungal activities of these compounds were also tested against two different fungal species Aspergillus niger and Penicillum notatum. They were found to exhibit good antibacterial and antifungal activities.