In a large bowl, combine the lamb, peppers, breadcrumbs, egg, garlic, fresh herbs, onion and seasoning and mix well with the hands. Form into meatballs the size of a golf ball.
In a large frying pan over a medium heat, warm the oil and add the meatballs. Cook and stir allowing the meatballs to brown all over. Once browned, pour over the chopped tomatoes and wine then drop in the bay leaf. Simmer gently uncovered for 45 minutes to an hour or until the meatballs are no longer pink in the middle, top up with a little more red wine if necessary. Remove from the heat and serve.