Weird play
 

I have never seen or heard this before. Pitcher pitches ball. Ball hits catcher's glove and pops up in the air. Batter then swings and hits ball. Is this a dead ball? This play was related to me from a recent tournament.

I was told they ruled dead ball, catcher obstruction and awarded bases. The only way I can see CO called is if the batter's bat made contact with the catcher's glove on the swing. Even if this was the case could / should CO be called?

This is a dead ball, and very possibly interference by the batter.
The pitch was completed when it hit the catcher's glove, the batter has zero right to swing until the next pitch is thrown. It is not catcher obstruction - the batter did not swing until the pitch was completed.
I know we all have brain farts now & then, but I've got a very hard time imagining that any solid umpire would call this anything but possible interference (interference if a runner is on base and the catcher might be going to make a play on that runner).

Yeah Steve youve got it right ,certainly not CObst

Well, in rec and middle-school ball I have seen some girls who swing so late or so slow (or both!) that they might have hit that ball in their normal swing!