Hinjo arresting Shojo would have been a crucial test for his Paladinhood. On the one hand, his uncle clearly broke the law and should probably go to jail according to a standard 'Lawful' outlook. On the other hand, to do so when there are 30,000 Hobgoblins led by an epic Lich Sorcerer about to storm the city and Shojo is the glue keeping it all together is downright irresponsible.
Would he see the city sacked for the sake of the letter of the law, or would he do the sane, responsible thing and only bring charges when the battle is over? Shojo should have accepted his resurrection, and Hinjo should have set the matter of his past actions aside until the victory had been won.