Place the flour onto a plate. Dredge the meat in flour until well coated.
Melt the butter in a frying pan over a high heat then add the beef and brown on all sides. Transfer the meat to a large saucepan.
In the same frying pan over a medium heat lightly brown the onions and carrots and add to the meat along with the peppers. Season then add the bay leaves and pour in just enough water to cover the beef.
Cook on a low heat stirring regularly until the beef is tender, about 90 minutes, adding a little water if the mixture begins to dry out. Spoon into warmed bowls and serve.