Proceedng u/s 138 N I Act is initiated against an offence commited by a person. Please see section 138. Relevant portion is "Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of maoney to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence ......."
And "initiated proceedings under the Arbitration Act was for recovery of loan. While initation of Proceedng u/s 138 N I Act is for commisson of an offence and this is a quashi-criminal proceeding nothing to with proceeding under A & C Act 1996.
Hope you have got your answer.