New Tektro Novela Disc Brakes
The brakes are mechanical brakes. Normally (I don't know this brand) the brake lever moves one side of the pads only and pushes the disc against the other. When properly adjusted the disc moves very slightly into the non-moveable pad.

Normally the pad that move is the outboard pad, and the fixed one is the inside pad. To adjust you probably need to unwind the inside pad 1/4 or 1/2 turn, and maybe readjust the calipers. 

Refer Here for some good instructions.