Time-out Debacle

[NewNCref]

Had a great VB game last night. With Team A down by 4, Team B has the ball in their front court, and is under pressure near the division line. I am trail, on the division line table side, and about 10 feet out on the floor to see the action right near the division line. B1 has possession of the ball, and I hear what I believe to be B's coach requesting a time out. I glance over to see B's coach, and he is in fact requesting a time-out, both visually and verbally. I blow my whistle to grant Team B a time-out. When I immediately hear an uproar in the rather crowded gym, and in the time it took me to glance at Team B's coach, B1 has committed a turnover, and A1 is now in player control. I sell it hard that B1 had possession when time-out was requested, and grant the time-out, and give the ball back to Team B.

A couple of questions about the situation.

1.) Was I, by rule, correct in what I did? Since B1 had control of the ball when time-out was requested, the time-out was granted and the ball given back to Team B.

2.) Could I have been in a better position to officiate this play and see the coach's request for time-out?