Time out or no time out?

[johnnyrao]

This happened to me tonight in a junior high game. A1 has the ball and is being pressured by B1. B1 reaches around A1 and grabs her arm trying to get the ball. I start to raise my fist but before I can blow the whistle A1 yells "Time out" because she is under intense pressure. I definitely had a foul before the TO call so I continued with my call on B1 for holding. It was also clear that A1 was calling the TO because of the pressure by B1. My question is: because I called a foul on B1 do I have to call the time out? I asked the coach if he still wanted it and he said no so we ignored the time out. No one questioned it so it was no big deal but the more I think about it the more I think I should have called the foul and granted the time out request too. I can't find something in the rulebook that allows me to ignore the time out just because I know what A1's intentions were. Thoughts?