The knurled part of the adjuster is the outer and turns around the inner, which is on the right in your first picture.
The cable outer should be a tight fit in the RH end (the inner) so that when you turn the knurled part the adjuster expands or contracts depending on which way you turn it. If this isn't happening, as Brucey said, the adjuster may be siezed. Hold the inner part with a pair of pliers and turned the knurled part anti-clockwise (from above) to undo it. If it's siezed, chuck it in an aerosol lid and submerge it in WD40, have a brew and a fag and try again. It should separate into two parts with a spring. Fill it full of grease and refit it.
If it doesn't, bin it and get another.
HTH