Place chicken in large pot and fill with water to cover; boil for 15 minutes.
In a medium bowl, stir together well the soy sauce, vinegar, pepper, garlic and sugar. Mix until the sugar is dissolved.
Now drain the chicken, saving 1/2 cup of the water. Replace chicken back into the pot. Add the water to the soy sauce mixture, then pour over chicken in pot. Top with the bay leaves and boil for 30 minutes over low to medium heat. Check often to make sure nothing is sticking on the bottom. Serve with or over steamed rice.