Just start again with the best possible quality potting soil you can afford, I don't think this plant will ever be healthy. Not all seeds will grow properly and this is one of those. Planting a few spares is always advisable, in case this sort of thing happens.
The soil is generally the cheapest part of any grow and you can't grow prime plants in cheap dirt.
This seedling is so far behind, by the time you "rescue" it, a newly planted seed today will be out performing it by miles by the time, and if, this plant does ever recover. Soil looks uber wet too, you only need to re-water once the top inch or so has dried out, and this may be anywhere from 1-7 days.
No diary and/or without a lot more info, makes answering this question more specifically nearly impossible.
Hope this helps, Organoman.