Rub chicken with garlic. Mince garlic and save. Combine flour, 1 tsp salt, and pepper in large paper bag; shake chicken pieces until coated. Heat oil in Dutch oven. Brown chicken a few pieces at a time on all sides; drain on absorbent paper. Pour off any oil remaining in pan. Return chicken to Dutch oven. Add garlic, tomatoes, tomato paste, onions, sugar, 1 tsp salt, and bay leaf. Cover. Basting occasionally with sauce in the pan, simmer 1 hour or until chicken is tender.