Heat the olive oil in a large, heavy-based casserole dish over a moderate heat. Season, then sear the chicken thighs until golden brown in colour all over. Remove and set to one side.
Add the onions, peppers and bay leaf, sweating for 4-5 minutes over a reduced heat. Add the garlic and continue to cook, stirring occasionally, for 1-2 minutes. Increase the heat, then pour in the sherry and deglaze the dish until the sherry has almost evaporated entirely.
Add the chicken thighs back to the dish and add the chicken stock and chopped tomatoes. Bring the casserole to the boil, then cover and reduce to a simmer for 25-30 minutes until the chicken is cooked. Cut into the thickest part of the thigh to check that the chicken is cooked through.
Adjust the seasoning if necessary, then stir in the olives and discard the bay leaf. Serve on a bed of hot rice.
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