Game Situation: Massive Catcher's Interference

 
No outs and a runner (R1) on 2nd base. On the pitch, the catcher reaches over the plate, the batter (B1) swings, but clearly "clubs" the catcher in the back of the catcher's mitt (nearly knocking the catcher's mitt off the catcher's hand). B1 still manages to hit the pitch towards the 2nd baseman.
 
B1 runs to 1st base as R1 runs to 3rd base. The plate umpire (using perfect mechanics, if I say so myself!), points to the spot of the interference and says "That's Interference". The catcher's interference is so obvious that the defense thinks the ball is dead and makes no attempt to field the batted ball (which has now come to rest in fair territory on the infield grass).
 
What do the umpires do now?
 
Call

Although the catcher's interference with the batter was very obvious and the defense thought that the ball became immediately dead, the ball remains live on a catcher's interference...

At the end of playing action, if the batter has safety reached first base and each runner has safety advanced one base, then the catcher's interference is completely disregarded (no time out, no choice by the offensive coach, etc).
 
If the batter does not reach first base or each runner does not advance one base (examples include where the batter is thrown out, or the batter hits a foul ball, or the batter swings and misses the pitch), then the ball is dead, the batter is awarded first base and any forced (or stealing) runner is awarded one base.
 
So, for the situation described below, the answer is -- play on -- no call!
 
Note: For umpire purists -- yes, NF calls this "catcher's obstruction" (NF 8-1-1e) while MLB calls it "catcher's interference" (OBR 6.08c,  7.04d and 7.07). Just be sure to call it something and then enforce the penalties, if needed.