The mishap occurred when a bus carrying members of a marriage party was returning from Basantgarh to Marothi belt skidded off the road and rolled down into a gorge at Dudu, they said.
According to police, 13 persons were killed and 40 others injured in the mishap. The injured passengers have been shifted to hospitals in Udhampur and Chenani belts.
Out of the injured persons, the condition of few was stated to be critical.
Jammu and Kashmir Governor N N Vohra expressed grief over the death of passengers in the accident.
In his message, the Governor conveyed his sympathy to the family members of the deceased persons.
Chief Minister Omar Abdullah directed the district authorities to ensure that best possible medical facilities were provided to the injured persons.