This is a Windows process file from Rocket Software, the company which owns the Universe development environment. For every process (user) connecting to Universe through a telnet session, you will see one tl_server.exe running on the Windows server hosting Universe. This process is initiated by the tl_service.exe and then connected to the foreign address. The requesting computer will then get a LOGIN message, and the user can enter their login id and password. If they do not, they will typically timeout, in which case the tl_server.exe will go away on the server, but the tl_service.exe stays present.
While connected to the Universe development environment, you may execute the command LISTU from the TCL command line, which will list every process of which Universe is aware. The process id's given there (PID) will match the Windows Task Manager process ids for each tl_server exe session. Any additional tl_server.exe processes running in Windows Task Manager which do not apper in the Universe LISTU output are zombie processes and can be killed. Do not kill the tl_service.exe process, otherwise new users will not be able to telnet in.
The client machine (the one asking to telnet to somewhere else) will have a TCP entry in the Netstat output where the Local Address column will have the IP address of the client machine, and a port number, and the Foreign Address column will have the hostname of the server and the port number will just say "telnet". On the server then, the output of the netstat will have under the Local Address column, it's own hostname and the port number will just say "telnet", and under the Foreign Address column it will have the client hostname (PC name) and the port number will be the same number you saw on your client there listed under the Local Address. So the two are flip images of each other.
On the server, the normal netstat shows the hostname and port, however you can get it to return the IP number and port instead by issuing the command netstat -n