Heat 1 tablespoon of the oil in a large saucepan. Add onion, capsicum, mushrooms and garlic and cook until the onion has softened, about 5 minutes.
Add the basil, curry powder, bay leaves, salt and pepper and cook 1 more minute.
Add tomatoes and stock, loosely cover and simmer 20 minutes.
Heat the remaining tablespoon oil in a saucepan over medium high heat. Brown the chicken on all sides, about 5 minutes. Add the chicken to the cacciatore sauce and simmer 10 more minutes until chicken is cooked through.