If the time out was handled properly (in my opinion) from the start, the coach would have no ground to stand on. I am not saying it wasn't handled properly but this is how do it.
When I acknowledge a request for a time out, I am not in a hurry. I generally give each team time to return to their bench (reasonable time without undue delay). Report the time out and at the end of my report I indicate "start-time". I do this the same for full or 30. By doing this, the coach has clearly his full time and has no room to protest.
I would also avoid placing the ball in play if a team does not come out if prudent but, I wouldn't hesitate to do so if their isn't some effort on the part of the team in the huddle to break. A word or warning. In some gyms, it gets loud when the band is playing (but only during full time outs) and the crowd is cheering and the horn may be less than desirable. Take the extra effort to make sure you know the coaches have heard the horn, you've announced the first horn to them and even give a couple quick whistle blast to bring them out. If none of that is effective, put the ball in play.
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